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After taking a strong base from the $253 support level, the bull market progressed aggressively, smashing through the $280 price level. But, BNB coin was losing its momentum as it approached the $320 resistance level. It finally hit a brick wall on November 26 at $316.5. At this point, the bullish market succumbs to the strong pressure from the supply zone. Then the price went into consolidation, and as the bulls could no longer withstand the pressure, the market slid down to a lower level.
Information and interpretations from the Indicators
The lower band and 20-moving average of the Bollinger indicator are on an upward trend, reflecting the previous bullish move in the market. But now the two bands of the indicator are converging as the price action slips below the 20-day moving average. Now, the market is slightly in the ‘sell’ zone. According to the RSI indicator, the momentum has fallen to 45. However, we cannot yet conclude that the market is completely bearish. It is more like the market is consolidating. This is because the bearish move in today’s market is not strong enough. And the fact that the upper band and the lower band of the Bollinger indicator converge signifies that the forces are becoming evenly matched. For now, it is difficult to predict the next direction of the market.
Information from the 4-hour chart
There was a strong bearish move towards the end of the last session that dropped the price from the point of market equilibrium. This strong bearish move continued for the first two trading sessions of today. But the price was salvaged in the third session at the edge of the major demand zone, which is at $280. Traders are buying again at the $280 price level, and the bullish price is recovering.
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