BNB recently hit a new all-time high on December 4, but the token is now experiencing a downtrend. Several technical indicators suggest bearish momentum is intensifying, potentially leading to further corrections in the short term.
ADX Signals Strengthening Downtrend
BNB’s Average Directional Index (ADX) jumped from 12 to 31 in just one day, highlighting the growing strength of the bearish trend.
- ADX values above 25 typically indicate strong trends, regardless of direction.
- With the ADX at 31, the downtrend appears to be gaining momentum.
This increase suggests that unless a reversal occurs, selling pressure is likely to persist.
Ichimoku Cloud Confirms Bearish Outlook
BNB’s price has fallen below the Ichimoku Cloud, a strong bearish signal.
- The cloud has thinned, showing weakening bullish momentum.
- The Tenkan-sen (blue line) remains below the Kijun-sen (red line), confirming a bearish trend.
- A red cloud indicates negative market sentiment, with increasing resistance for upward recovery.
If the price fails to break back above the cloud, it could face additional downward pressure.
EMA Death Cross Suggests Further Declines
The EMA lines have formed a death cross, where the shortest line crosses below the others.
- This pattern often signals weakening bullish momentum.
- If the $647 support level breaks, BNB may test lower levels at $622 and $593.
These zones are critical for determining the strength of the downtrend.
Key Price Levels to Watch
- Support Levels: $647, $622, $593.
- Resistance Levels: $687, $761.
A sustained break above $687 could signal a reversal, paving the way for recovery. Otherwise, the bearish trend may continue, pushing prices lower.
