BNB Price Drops 2% After Hitting $620 Resistance

Binance Coin (BNB) experienced a notable price correction after reaching a resistance level of $620 on April 23. The price of BNB dropped by 2% in the past 24 hours, settling at $605. This decline indicates a decrease in market activity as bulls attempt to regain momentum. The sudden withdrawal from BNB, despite normal volatility patterns in the crypto space, has created uncertainty about its future performance.

The market showed resistance to BNB when it reached $620, leading to an immediate price correction. The constant rise in BNB's price action reached its limit, prompting short-term traders to withdraw their profits. This reaction is typical when a price reaches a critical psychological milestone that previously led to strong resistance. The current market mood has contributed to the decrease in BNB's price. Market reactions to both Bitcoin and Ethereum demonstrate consolidative behavior, but the price changes in altcoins, including BNB, remain highly volatile due to market forces.

On April 29, BNB Chain is set to undergo a significant upgrade known as the Loremtz mainnet hard fork. This upgrade will halve the block time, speeding up transactions and improving user experience. According to Elja, this upgrade is expected to enhance the overall performance of the BNB Chain, potentially leading to a surge in BNB's price.

The market has adopted $600 as an essential psychological and technical barrier for Binance Coin (BNB). A sustained position above this level suggests that bulls maintain dominance after the previous rejection. However, the price of BNB remains at risk of a short-term bearish trend if it moves below the $600 support level, which could trigger more sellers to push the token price down to test the $580 support or lower levels.

Technical indicators are currently mixed. The Relative Strength Index (RSI) has softened its position from highly bullish territories, stabilizing at 54. The recent correction enabled the bulls to sweep through liquidity, which could lead to a significant upside. Meanwhile, trading volume decreases as purchasers show a weak commitment to supporting BNB’s current price levels.

If the $519 support level, which coincides with the 50-day moving average, holds, the BNB price could break out to the upside. In such a case, BNB would break through the $620 resistance key toward the next technical barrier at $634. A breach above this level will open the doors for further upside, with a potential rally toward $636 and $643, affirming the bullish sentiment. On the downside, if early profiteering dominates, the BNB price action could breach the key support at $600. A breakdown below this level will call for a deeper correction to $596, which will be in line to absorb the potential selling pressure.

The recent BNB price movement displays all the characteristics of a naturally occurring market retreat. The price rejection at $620 marks an integral part of market dynamics, which causes assets to rest and consolidate gains after substantial price movements. The market rest period for BNB could be temporary as the cryptocurrency fundamentals remain positive while support areas stay intact.

Market participants should track the price activity around $600 and $615 for BNB. If the price breaks below support levels, it has the potential to continue its downward movement. However, if it surpasses resistance levels, it might launch another upward trend. The cryptocurrency market currently prioritizes BNB as an asset that demonstrates qualities of consolidating and continuing upward trends.