BAND Technical Analysis: Band Holding the $1 mark, but for how long
BAND Protocol has been in a bear market for the last few months. The price has entered an important demand zone of $1 after seeing a fall from the $2 level in April.
- BAND/USDT is up 1.49% today
- BAND/USDT is trading at the daily demand zone
BAND/USDT is trading at $1.090 after coming down from the resistance level of $2.235. This decline of almost 52% is due to the fact that the bulls were unable to breach the resistance of $2.235 even after multiple attempts. This downfall took the price all the way down to $0.920. The Bulls quickly pushed the price back to the $1 mark. Any further delay would have caused a massive downfall of 22% all the way to $0.774.
The Daily chart shows a bearish price action
Source: BAND/USDT BINANCE price chart TradingView
BAND Technical Analysis
According to the Daily chart, the last time the price was at this level was in October previous year. During that time, the price saw a massive pump of almost 225%. This marks the significance of the level. As of now, the price has taken a jump of around 10% from its daily support. According to the indicators, the price is 35% below the 200 EMA. It is also below the 9 and 15 EMA.
This indicates that the bears are still in control and the buyers must remain cautious by following proper risk management. The bulls will face resistance at $1.191 level. If they manage to break this resistance, we can expect an upside of 12.50% before encountering the next resistance at $1.347. This level is a very strong resistance and bulls will have to attack with substantial volume.
The 4H chart shows the formation of a potential bear flag.
Source: BAND/USDT BINANCE price chart TradingView
The 4H Chart helps to analyze the price action in a shorter time frame. We can clearly observe a market structure that represents a strong downtrend. Bears are pushing the price lower, penetrating through the support levels. A recent surge in volume is indicating some buying action.
According to the price action, the price is forming a potential bear flag which is a trend continuation pattern during a downtrend. A breakdown of this pattern will trigger panic selling, sending down the price to much lower levels. Bulls must push the price above the 200 EMA to prove the bears wrong.
RSI: The RSI indicator is currently at 57.20 and the RSI has crossed the MA line towards the upside. This is a sign of bullish to sideways market condition.
MACD: The MACD indicator made a bullish crossover, the MACD line is slowly making its way above the 0 line highlighting the probability of an uptrend.
200 EMA: As observed, on the 4hr, the price is trading below the 200 EMA(exponential moving average) which acts as a significant resistance. This is a clear indication of a downtrend where the sellers are in control and for a trend reversal, the price must break and trade above the 200 EMA.
Technical levels
Support Levels: $0.984 – Support 1
$0.772 – Support 2
Current Price: $1.090
Resistance Levels: $1.191 – Resistance 1
$1.350 – Resistance 2
Conclusion
BAND is in a bear market as of now. The price is at an important demand zone which makes it an attractive proposition for investors. Although this position also carries a downward risk of 25% which is still significant. Band is in a crucial situation as a downfall can signal the extension of a long bear market. A reversal from here is only possible if the bulls manage to push the price above the 200 EMA on the 4H chart.
