BNB has faced a significant rejection at a critical resistance level, raising concerns among traders about a potential price correction. After an impressive rally, the momentum has faltered, leaving the cryptocurrency at a crossroads. 

This key level has proven to be a formidable barrier, indicating that selling pressure may be increasing as bears step in. However, the big question is whether this rejection marks the beginning of a downward correction or if the bulls can muster enough strength to regain their footing and continue pushing higher.

As the market navigates this pivotal moment, this piece will analyze BNB’s recent rejection at the critical resistance level and assess the implications for its price trajectory. By examining market trends, technical indicators, and trading volumes, this analysis will explore the possibility of a correction and what it could mean for traders.

Indicators Pointing Toward A Downside Correction For BNB

Recently, BNB’s price has turned bearish on the 4-hour chart, pulling back toward the 100-day Simple Moving Average (SMA) after facing rejection at the $605 resistance level. This downward move signals a shift in market sentiment as bulls struggle to maintain upward momentum. The rejection at the $605 resistance level has triggered heightened selling pressure that could push the price lower for a potential correction.

An analysis of the 4-hour Relative Strength Index (RSI) reveals that the signal line has dropped to 57%, retreating from its previous position in overbought territory. Typically, this decline indicates that the bullish momentum is weakening after reaching a peak, as buyers are beginning to lose steam.

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Furthermore, on the daily chart, BNB is exhibiting negative momentum, as evidenced by the formation of a bearish candlestick, despite trading above the 100-day SMA. This situation reveals a possible contradiction in market sentiment. Meanwhile, if selling pressure continues and BNB is unable to maintain its position above the 100-day SMA, it may lead to a more significant price drop.

Finally, on the 1-day chart, the RSI has experienced a decline to 69% after rising to 62%, reflecting strong optimistic sentiment and buying pressure. Although the RSI remains above 60%, which suggests a bullish outlook, the recent drop signals that the upward momentum may be slowing down.

Key Support Levels To Watch After The Rejection

Following BNB’s recent rejection at the $605 resistance level, the critical support zone to watch is around $531, where buying interest may emerge. If the price drops below this level, it could signal a deeper bearish move, with the potential to push BNB down toward the $500 mark and beyond. In addition, a break below these key levels could intensify selling pressure and set the stage for further declines, making them crucial areas for traders to monitor in the short term.

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However, should the bulls manage to mount a comeback and push the price above $605, the asset could continue its upward movement toward the next resistance range at $635. A successful breach of this level may trigger additional gains, allowing the price to challenge other resistance points above.

Featured image from Adobe Stock, chart from Tradingview.com

Cardano (ADA) price has trended downward over the past few days. Trading at $0.34, the popular altcoin has witnessed a 3% fall since Monday. 

On-chain data suggests that Cardano may face a price correction of up to 21% in the near term. This analysis delves into why this may happen and highlights the price targets ADA holders need to watch. 

Cardano High NVT Ratio Poses Significant Risks

As of this writing, Cardano’s Network Value to Transactions (NVT) ratio, which assesses its valuation, sits at its highest level since February 2023. Per Santiment’s data, this is 12.13.

When an asset’s Network Value to Transactions (NVT) ratio spikes, it indicates it may be overvalued. It signals that its price is relatively high compared to the amount of activity on its network. Historically, an inflated NVT ratio is often followed by an asset’s price correction, as it means that the rally is not backed by actual demand. 

Read more: How To Buy Cardano (ADA) and Everything You Need To Know

The combination of ADA’s falling price and rising NVT ratio reflects negative market sentiment. Its holders are selling their assets, leading to lower transaction volume and contributing to its price decline.

Cardano’s declining Relative Strength Index (RSI) supports this bearish outlook. At press time, this indicator is in a downward trend and below the 50-neutral line at 48.57.

This RSI value indicates that buying pressure is decreasing in the Cardano market, and sellers are becoming more dominant. Traders might interpret this as a warning that the price could continue to fall, causing them to sell more, thereby exacerbating the price decline.

ADA Price Prediction: Will It Drop 21% Over the Next Few Days?

Cardano is currently trading at $0.3469 and is testing the support level at $0.3479. A rise in selling pressure could lead to a breakdown of this support, potentially causing Cardano’s price to plummet by 21% to its August 5 low of $0.27.

Read more: Who Is Charles Hoskinson, the Founder of Cardano?

On the other hand, if buying activity picks up and ADA bulls can successfully defend this support line, the coin may initiate a bullish trend toward $0.47, a high it last reached in June.

Bittensor (TAO) price has dropped by 6% in the last 24 hours, reversing the earlier trend where it closed in on $700 just days ago. This decline has ensured that TAO’s price is now below the $600 threshold.

With this condition, the altcoin may struggle to retain its current levels, as this analysis shows that it could soon break below $500. Here is why.

Bears Take Control of Bittensor’s Momentum

According to Santiment, the Weighted Sentiment for TAO has fallen into the negative region. This metric considers unique social volume, reflecting the crypto community’s overall perception of a project.

When the reading is positive, it signals that market participants are confident in potential short-term gains for a cryptocurrency. Conversely, a negative reading suggests that most are anticipating a bearish move.

At the time of writing, TAO’s sentiment reading stands at -0.026. This indicates a broadly bearish outlook for the altcoin, suggesting that demand for TAO could decline, and its price may continue to decrease.

Read more: How to Invest in Artificial Intelligence (AI) Cryptocurrencies

Another indicator suggesting that TAO’s price might decline is the 20-day Exponental Moving Average (EMA). The 20 EMA is calculated by averaging the asset’s prices over the past 20 trading days, giving more weight to the most recent prices and making it more responsive to recent price movements.

When the price is above the EMA, the trend is bullish. However, as soon as the price drops below the threshold, the token undergoes a correction. For instance, when a similar thing happened around July 31, TAO’s price dropped by 32% within three days.

On August 28, the token fell below the 20 EMA, and by September 6, it had lost 25% of its value. If TAO drops below this threshold again, it could face a double-digit correction.

TAO Price Prediction: Sharper Decline

On looking critically again at the daily chart, BeInCrypto observes that the Moving Average Convergence Divergence (MACD) has turned negative. The MACD  is primarily a technical oscillator used to measure momentum and trade trends.

When the MACD is positive, it signals bullish momentum, suggesting that price could rise. Conversely, a negative MACD reading points to bearish momentum. In TAO’s case, the MACD shows that the 12-day EMA (blue) crossed below the 26-day EMA (orange), indicating that sellers are in control and reinforcing the bearish sentiment.

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If this remains the same, TAO’s price might sink below the 38.2% support floor and hit $452.30. On the contrary, the altcoin could bounce if bulls ensure that it does not drop below the support. Should that happen, TAO might jump to $648.99.