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Binance Coin (BNB) broke below the $297 support level, as sellers extended the bearish momentum. This week, BNB has been on a selling streak with the altcoin registering three successive days of bearish candles on the daily timeframe.
This revealed the strong presence of sellers with sentiment shifting bearish in the overall crypto market.
Bearish Momentum Sees Sellers Break Key Support Level
The bearish break below the $297 support level signaled a shift in momentum for BNB from bullish to bearish in the short term. Previously, the buying pressure at the $297 support level saw buyers repel sellers early in January.
However, the shift in market sentiment favoured sellers on this occasion with a daily candle close under the previous support, now flipped to resistance.
As such, the Relative Strength Index (RSI) fell below the neutral 50, posting a reading of 44, as of the time of writing. This revealed the growing selling pressure with a reduction in buyers. A look at the Chaikin Money Flow (CMF) showed that it remained above the zero mark, although it registered a significant drop.
This could see the selling pressure sustained in the short term, as buyers bid time before initiating a reversal.
Intraday traders looking to take advantage of this shift in momentum can enter at the current market price of $292 with a short term target of 15% gains at $250. On the flip side, if bulls rally to reclaim the support level, traders can watch out for a bullish candle close above $297 before entering new positions.
This could see BNB drop to the $250-$260 zone before another rally upwards.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.