BNB Price Drops, But 100 SMA Could Spark New Ups

Binance Coin (BNB) has faced resistance at the $340 level, leading to a decline in its value. Despite attempts by buyers to break through this barrier since February 3, the altcoin has been unsuccessful. However, there are positive signs indicating a potential future price increase.

BNB recently traded above its moving average lines, signaling a possible upward trend. Currently trading at $325, BNB is showing signs of a new rise to retest the overhead resistance. Although BNB briefly entered the oversold area at $320, it has held above the moving average lines, making a drop below the previous low of $280 unlikely.

Additionally, BNB is currently in a positive trend zone, suggesting the possibility of further gains. On the Relative Strength Index (RSI) with a period of 14, BNB is currently at a level of 51, indicating an equilibrium between supply and demand.

Despite the recent decline, the price bars have remained above the moving average lines, suggesting a potential continuation of the upward movement. BNB is currently trading in the oversold area of the market, with the Stochastic indicator on the daily chart showing a level below 20. Based on technical indicators, key resistance levels for BNB/USD are at $600, $650, and $700, while key support levels are at $300, $250, and $200.

In the short term, BNB has crossed the moving average lines and experienced a minor deterioration in the bullish trend zone. According to the price indicator on the 4-hour chart, BNB may fall to $315.70 or the 2.618 Fibonacci extension. The next direction for BNB/USD will depend on how it performs against these key levels and the overall market conditions.

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