On the 4-hour chart, Binance Coin (BNB) reveals the emergence of a head and shoulder pattern, signaling potential bearish momentum. The key support level, represented by the neckline, faced a break, but a subsequent piercing line, coupled with a preceding hammer, confirmed the neckline's strength as support. Bearish momentum intensifies if subsequent candlesticks breach and close below the neckline, particularly beneath the piercing pattern. Oscillator indicators, marked by a descending trendline in values, align with the bearish narrative, corroborating the head and shoulder pattern's formation. The pattern can be invalidated if BNB breaches the right shoulder, accompanied by RSI surpassing the 60 level and the MACD histogram and signal line residing above the 0 line.
XLM Price Action
Similarly, Stellar (XLM) portrays a head and shoulder pattern on the 4-hour timeframe, signaling potential downward movement. A bearish engulfing pattern at a crucial resistance level, demarcated by a blue rectangle, signifies a reliable point of reversal. Below this resistance lies the right shoulder of the head and shoulder pattern. A bullish engulfing pattern at the pattern's base confirms a potential bottom. A break below this key support level could trigger further declines, potentially leading to a death cross on the EMA 50 & 200. Conversely, an upward breakthrough above the right shoulder, breaching the key resistance level, accompanied by RSI surging beyond the 60 level and MACD histogram and signal line crossing above the 0 level, may pave the way for an extended bullish move. Investors closely watch these technical cues to navigate potential shifts in BNB and XLM prices.
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