BNB has bounced off the crucial $500 support level, sparking speculation about whether this marks the beginning of a bullish resurgence or a temporary relief before another downturn. After facing sustained selling pressure, buyers have stepped in to defend this key level, fueling hopes for a potential recovery. However, with resistance levels still looming, the true strength of this rebound remains uncertain.

Market sentiment remains uncertain as bulls attempt to regain control while bears stay cautious. BNB’s next move hinges on breaking key resistance levels and sustaining higher prices. A successful breakout could confirm a bullish continuation, while fading momentum may lead to another rejection and a retest of lower support zones.

Technical indicators such as RSI and moving averages will play a crucial role in determining the next move. Bulls may have the upper hand if the RSI trends upward and key levels are reclaimed. On the other hand, if bearish pressure resurfaces, the possibility of further downside cannot be ignored.

Analyzing The Buying Pressure On Price

Currently, BNB is displaying strong upside movements as it moves toward the $605 resistance level. The coin has been steadily climbing, indicating buyers are regaining control and pushing its price higher. This move comes after a successful rebound from the key $500 support level, which has sparked renewed optimism among traders. 

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Despite the ongoing bullish momentum, the price’s position under the 100-day SMA signals that BNB has not yet fully regained a strong positive trend in the longer term. It could also indicate that there is still some selling pressure from bears that might prevent the price from maintaining a steady rise.

If BNB continues to trade below this key moving average, it could have difficulty sustaining its current upbeat momentum. The longer it remains below the SMA, the greater the risk of a reversal or consolidation.

Additionally, the RSI (Relative Strength Index) indicator remains in the oversold territory, showing no immediate signs of moving back toward neutral or the overbought zone. An RSI reading below 30% typically implies that the asset is oversold, and there may be more downside potential or a need for price correction. 

However, the RSI’s failure to exit the oversold zone suggests that the market is still under strain, with bearish pressure possibly outweighing bullish pressure. For the bulls to take control and push BNB higher, the RSI would need to gradually move back above the 30-50% range, triggering a shift toward more balanced market conditions.

Is BNB Ready For A Breakout Or Heading For Another Decline?

In conclusion, BNB’s current upward movement is an encouraging sign for the bulls, but the real test lies at the $605 resistance level. Should bulls succeed in pushing the price above this level, a stronger rally may follow, resulting in the cryptocurrency testing other resistance levels such as $680 and $724.

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Nevertheless, failure to clear the $605 zone might lead to a consolidation phase or possible pullback to the $531 and $500 support levels. Traders will need to closely monitor market conditions and technical indicators to gauge whether the current bullish sentiment can be sustained.

Featured image from Shutterstock, chart from Tradingview.com

Amid the broader market downturn, user activity on the Layer-1 (L1) network Ethereum has plummeted to its year-to-date low. This comes as the value of Ethereum’s native token, ETH, sinks below the $3,000 mark for the first time since November.

With a strengthening bearish sentiment, ETH could extend its price decline in the short term.

Ethereum Sees Decline in User Activity

On February 2, ETH fell to a five-month low of $2,143 before making a slight rebound. While this price dip is part of a broader market decline, a key factor contributing to ETH’s struggles is a reduction in the active addresses on its network. 

According to Glassnode, the daily count of active addresses on the Ethereum network fell to a year-to-date low of 420,346 on February 2. 

A decline in Ethereum’s active addresses suggests reduced user activity on the network, indicating lower transaction volumes and engagement with the decentralized applications on the blockchain.

The drop in demand can weaken ETH’s price momentum, as fewer transactions mean less network utility and a reduced burn rate, making ETH more inflationary. This has been the case for the leading altcoin, whose circulating supply has added 12,066 ETH over the past week. 

According to Ultrasoundmoney, 12,066 ETH, valued above $31 million at current market prices, have been added to the altcoin’s circulating supply in the past seven days. 

When more ETH tokens enter circulation like this, the overall supply available for purchase rises. This typically results in a price drop, especially as the increased supply can exceed demand.

ETH Price Prediction: More Pain Ahead for Coin Holders?

ETH trades at $2,595 at press time, noting a 16% price drop over the past 24 hours. The coin’s negative Balance of Power (BoP) on the daily chart reflects the strong selling pressure. At press time, the indicator stands at -0.38.

The BOP indicator measures the strength of buyers versus sellers by analyzing price movements within a given period. When BOP is negative, sellers have more control, indicating bearish momentum and potential downward pressure on the asset’s price.

If the downtrend continues, ETH’s value could fall to $2,500. If this support level fails to hold, the altcoin’s price could drop further to $2,224.

However, a positive shift in market trends could propel ETH’s price to $2,811.

Solana-based meme coin FARTCOIN has steadily declined over the past week. It has shed 31% of its value in the past seven days amid waning demand.

As the bearish sentiment against the meme coin strengthens, FARTCOIN appears poised to extend its decline to a two-month price low.

FARTCOIN Witnesses Weakening Demand

The double-digit decline in FARTCOIN’s value has pushed its price below the 20-day exponential moving average (EMA). At press time, this key moving average forms a dynamic resistance level above FARTCOIN’s price at $1.04. The token would struggle to break above this level if demand continues to plummet. 

An asset’s 20-day EMA measures its average trading price over the past 20 days, giving more weight to recent prices to better reflect short-term trends. When an asset’s price falls below this key moving average, it signals weakening momentum and a bearish shift. This suggests that FARTCOIN’s selling pressure is increasing, and unless demand picks up, the asset could continue declining.

Additionally, FARTCOIN’s falling Relative Strength Index (RSI) reflects the waning buying activity in the market. At press time, its RSI stands at 40.22.

This momentum indicator measures an asset’s oversold and overbought market conditions. It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and due for a correction. On the other hand, values under 30 indicate that the asset is oversold and may witness a rebound. 

At 40.22, FARTCOIN’s RSI  indicates that the asset is in a bearish zone but not yet oversold, suggesting weakening momentum and increased selling pressure. 

FARTCOIN Price Prediction: Will It Sink or Surge?

Readings from FARTCOIN’s Fibonacci Retracement tool suggest that the Solana-based meme coin risks falling to a two-month low of $0.14 if buying activity remains subdued. The token last traded at this low on December 3.

However, if market sentiment shifts and buyers increase demand for FARTCOIN, they could push its price above the 20-day EMA dynamic resistance at $1.04 and toward $1.13.