BNB has found its footing at the $605 support level, sparking optimism for a potential recovery. Following recent bearish pressure, the bulls appear to be regrouping, aiming to regain control and push the price higher. With key technical indicators signalling renewed buying interest, market participants are closely watching whether this support will serve as the launchpad for BNB’s next rally.

As BNB shows encouraging signs of revival, this article aims to delve into its rebound from the $605 support level and evaluate its capacity for a sustained recovery. By analyzing market trends, technical indicators, and key resistance levels, we seek to determine whether BNB is positioned for a fresh, bullish run or still faces the risk of renewed bearish pressure.

Technical Indicators Signal A Potential Rebound

On the 4-hour chart, BNB is currently exhibiting a steady upward trajectory despite trading below the 100-day Simple Moving Average (SMA). After rebounding strongly from the critical $605 support level, the asset is making strides to extend its gains, aiming toward the $635 resistance zone. A successful breach above the 100-day SMA could further validate its recovery, potentially opening the door to higher levels.

Also, the 4-hour Relative Strength Index (RSI) has rebounded to 42% from a low of 35%, signaling a resurgence in buying pressure and a shift toward a more bullish market sentiment. If the RSI rises and approaches 50%, it could confirm its upside movement, giving BNB the strength to push higher and test resistance levels.

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BNB is showing strong upward movement on the daily timeframe, holding above the 100-day SMA after a rebound at the $605 support level. This has provided stability, enabling the cryptocurrency to advance toward the $635 resistance level. The price movement indicates a growing optimistic sentiment as BNB trades above key technical levels.

Furthermore, the daily RSI has risen above 50% after briefly dropping below it, signaling a shift to positive market sentiment. With bearish momentum subsiding, this suggests that buying pressure is stronger than selling pressure. If the RSI continues to rise, it could further support BNB’s upswing and strengthen the positive trend, possibly leading to a continued rally, targeting higher resistance levels.

Analyzing Key Resistance Targets For BNB Next Move

Following its rebound from the $605 support level, BNB is targeting the $635 resistance level, which could serve as a key obstacle. Should the cryptocurrency successfully break through this resistance, the next targets could be higher zones, such as the $724 level and beyond, signalling robust bullish momentum.

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However, if BNB fails to break through the $635 resistance, it may indicate a potential consolidation or reversal, with the price falling toward the $605 support level. A successful break below this support could lead to more declines, targeting lower support levels.

Featured image from iStock, chart from Tradingview.com

In the past 24 hours, several cryptocurrencies have made attempts to recover from recent losses, driving renewed interest in certain altcoins. Among the top trending altcoins today is a newly launched asset whose project recently introduced its Mainnet altcoin and has quickly gained traction in the market

Notably, the other two, according to CoinGecko, include a popular altcoin with a lot of market interest and a privacy-based cryptocurrency.

Vector Smart Gas (VSG)

Vector Smart Gas is a recently launched layer-1 network on the Ethereum blockchain that focuses on decentralized Finance (DeFi) and Real-World Asset (RWAs) tokenization. Its native token, VSG, is one of the altcoins trending today, mainly because of its price increase.

In the last 24 hours, VSG’s price has increased by 49% and cumulatively 550% in the last seven days. This development could also be linked to the notion that the token is trending on TikTok— making demand higher.

At press time, VSG’s price is $0.0044. Furthermore, the daily chart shows that the Moving Average Convergence Divergence (MACD) is positive, indicating that the momentum around the altcoin has remained bullish.

Should this remain the case, then VSG’s price might climb much higher. However, if momentum becomes bearish, that might not happen. Instead, the altcoin’s value could decline to the $0.0018 support.

Tornado Cash (TORN)

As mentioned above, Tornado Cash is a privacy-focused cryptocurrency that is part of the trending altcoins today. But besides that, Tornado Cash scored a very huge victory after a US appeal court ruled against the Treasury Department.

As a result, TORN’s price climbed by 396% in the last 24 hours. As of this writing, it is $17.86. According to the daily chart, the volume around the cryptocurrency has also surged, suggesting widespread interest in the token.

As long as the volume increases, the altcoin’s price could climb as high as $39.41. However, if the cryptocurrency holders take profits, this could change, and the altcoin might drop to $12.24.

Solana (SOL)

Last on the list is Solana, one of the best-performing altcoins of the last year. However, unlike TORN and VSG, SOL is not trending because its price has increased. In fact, the token’s value has hovered around $235 within the last 24 hours.

On the daily chart, the Parabolic Stop And Reverse (SAR) indicator has risen above SOL’s price. The Parabolic SAR is a technical indicator that spots support and resistance. 

When the price is above the indicators, there is strong support, and the price can increase. But since it is below it,  Solana’s price faces resistance. Should that remain the case, then SOL could drop to $219.63.

On the other hand, if the altcoin sees a rise in buying pressure, the trend might reverse. In that case, SOL could rise to $264.33.

XRP has witnessed a surge in selling activity since it climbed to a three-year high of $1.63 on November 23. Currently trading at $1.41, the altcoin has since noted a 13% price dip.

On-chain data has revealed a significant spike in profit-taking activity over the past few days. This highlights a potential continuation of the XRP price dip. What should token holders look out for?

XRP Traders Book Gains

BeInCrypto’s assessment of XRP’s on-chain performance has shown a surge in profit-taking activity among its holders, reflected by its rocketing realized profit. According to Santiment’s data, over the past seven days, XRP’s realized profits have totaled $1.84 billion, the highest since April 2021.

An asset’s network realized profit measures the overall profit gained by network participants based on the price at which tokens were last moved. A spike in this metric indicates that many holders are selling their assets at a significant profit compared to their acquisition price.

This often occurs during periods of high market activity. It signals a profit-taking trend and hints at potential changes in sentiment. As this selling pressure increases, the downward price action persists. 

Notably, XRP’s long-term holders contribute to the downward pressure on its price. They have taken advantage of the token‘s rally to a multi-year high to book gains, as evidenced by the decline in XRP’s Mean Dollar Invested Age (MDIA) over the past week.

This metric tracks the average age of all dollars invested in an asset, reflecting how long tokens have been held in wallets. When it falls, it indicates increased network activity as older coins are being moved or spent. 

As in XRP’s case, when the MDIA falls during a price rally, long-term holders are actively selling their assets, contributing to the bearish pressure on the altcoin’s price. The reason for this is not far-fetched.

The percentage of XRP supply in profit recently crossed 90%. This means that most XRP holders are now making a profit. As of this writing, nearly 97% of the token’s circulating supply of 99 billion is in profit.

XRP Price Prediction: Token Risks Falling Below $1.30

XRP currently trades at $1.41, above support formed at $1.33. Sustained profit-taking activity by token holders will pull XRP’s price to test this support level. If it fails to hold, the downward trend strengthens, and the XRP price dip may extend to $1.28.

On the other hand, this bearish projection will be invalidated if buying activity resumes. This may push XRP’s price toward revisiting its three-year high of $1.63.