$BNX Has been showing strong upward momentum due to recent developments like the token burn, yet technicals suggest caution with overbought signals. A short-term pullback to retest support levels like $0.42 or even lower might occur, providing another buying opportunity for those bullish on BNX, or a confirmation of a bearish move if lower supports fail.
Technical Indicators:
Support and Resistance:
Support levels are currently noted around $0.42 - $0.43, with a recent analysis suggesting potential buying zones in this range. Resistance is seen at levels like $0.46, $0.50, and $0.53+, hinting at possible profit-taking if these levels are hit.
On a broader scale, there's mention of resistance at $0.70 with support at $0.40, indicating an ascending triangle pattern which might suggest bullish continuation if broken.
RSI (Relative Strength Index):
The RSI is noted to be near overbought levels in some analyses, suggesting a potential consolidation or minor pullback might be on the horizon. This could mean a short-term correction after a rapid price increase.
MACD (Moving Average Convergence/Divergence):
There were mentions of bullish momentum, though some suggest this momentum might be weakening, especially on shorter time frames like H1-H4.
Volume:
Volume has been significant during breakouts, which often confirms the strength of the move. However, post-breakout, volume should be monitored to see if buying interest sustains the upward trend.
Market Trends:
Bullish Signs: The formation of an ascending triangle and higher highs with higher lows as seen in some posts indicate a bullish trend. The significant token burn event announced (reducing supply by 74%) might have contributed to the price surge.
Look for pullbacks to key support levels for entry points, keeping an eye on RSI for signs that the asset might be oversold again after any correction.
Monitor resistance levels for potential sell signals, especially if there's a failure to break through these levels with volume.
Not Financial Advice, DYOR!!
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