Both Binance Coin (BNB) and Avalanche (AVAX) have been under selling pressure this week, continuing their downward trajectory after posting losses of 6% and 13%, respectively, since Saturday. A closer look at their technical indicators suggests a bearish outlook, with both altcoins showing signs of weakening momentum.
BNB Price Outlook: Correction Likely Ahead
BNB’s price encountered resistance at $725.61 on Saturday, leading to a 5.6% pullback by Monday. As of Tuesday, the cryptocurrency is testing its ascending trendline, which has held since early August 2024, and is currently trading at $681.
Should BNB break below this trendline and fall under the 200-day Exponential Moving Average (EMA) at $662.15, the cryptocurrency could face a further decline of 9.5%, potentially retesting daily support at $612.50.
Momentum indicators confirm the negative trend, with the Relative Strength Index (RSI) on the daily chart sitting at 44—below the neutral 50 level—indicating strong bearish pressure. Additionally, the Moving Average Convergence Divergence (MACD) experienced a bearish crossover on Sunday, further supporting a downtrend in the market.
Avalanche Price Outlook: Continued Weakness Expected
Avalanche (AVAX) saw rejection at the $41.15 level on Saturday, leading to a sharp 13.5% decline by Sunday and a drop below its 200-day EMA at $37.29. As of Tuesday, the price continues to drift lower, currently hovering around $35.05.
If AVAX’s pullback persists, the token could experience an additional 8.5% drop, potentially testing the 61.8% Fibonacci retracement level at $32. This level is derived from the August low of $17.29 and the December high of $55.79.
Much like BNB, Avalanche’s RSI remains below 50 and is pointing downward, signaling strong bearish momentum. The MACD also crossed into negative territory on Monday, further suggesting a continuation of the downtrend.
Both BNB and AVAX are struggling under current market conditions, with technical signals indicating that further downside could be in store if the bearish momentum persists.
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