1. Technical assessment of the potential for further declines
Selling pressure has dried up (Volume Dry-up):
The current 1H candle's volume is only 2.93K BNB, far below the previous climactic sell-off candle (over 34.6K BNB). This suggests that sellers reacting to the CPI news have run out of supply to force prices into a free fall.
A higher low:
The latest decline did not break below the panic low of 708.64 USD. Instead, it stalled and repeatedly bounced from the 712–713 USD area, pushing the price back to 717.00 USD. This is a fairly textbook sign of supply absorption and a double bottom forming.
Momentum indicators have turned upward:
The KDJ indicator has just formed a Golden Cross below the 50 level, with the J line turning sharply upward to 54.11.
RSI(6) has recovered to 48.34 and is approaching a break above 50, suggesting that buyers are gradually regaining control of the 1H timeframe.
Risk of a retest of 712–714 USD:
Since the price is still below the dynamic EMA resistance bands, and given the thin liquidity over the weekend, Market Makers will often let the price drift or create a slight wick down to 713–715 USD to shake out any remaining highly leveraged traders chasing Long positions.##TinFed $BNB
Selling pressure has dried up (Volume Dry-up):
The current 1H candle's volume is only 2.93K BNB, far below the previous climactic sell-off candle (over 34.6K BNB). This suggests that sellers reacting to the CPI news have run out of supply to force prices into a free fall.
A higher low:
The latest decline did not break below the panic low of 708.64 USD. Instead, it stalled and repeatedly bounced from the 712–713 USD area, pushing the price back to 717.00 USD. This is a fairly textbook sign of supply absorption and a double bottom forming.
Momentum indicators have turned upward:
The KDJ indicator has just formed a Golden Cross below the 50 level, with the J line turning sharply upward to 54.11.
RSI(6) has recovered to 48.34 and is approaching a break above 50, suggesting that buyers are gradually regaining control of the 1H timeframe.
Risk of a retest of 712–714 USD:
Since the price is still below the dynamic EMA resistance bands, and given the thin liquidity over the weekend, Market Makers will often let the price drift or create a slight wick down to 713–715 USD to shake out any remaining highly leveraged traders chasing Long positions.##TinFed $BNB