- Band Protocol price faces strong selling pressure as on-chain metrics turn bearish.
- The digital asset could be poised for a massive pullback down to $4.
Band Protocol has been trading fairly sideways for the past two months despite the cryptocurrency market turning bullish. The digital asset now faces steep resistance ahead and bulls have to absolutely defend a critical support level to survive.
Band Protocol price needs to defend $5.45 to avoid slipping
On the daily chart, Band Protocol established a downtrend and dipped below the 50-SMA and the 100-SMA turning both into resistance levels. There is very little support on the way down, which means bears have a good chance of pushing Band Protocol price down to at least the last low of $4.5.
BAND/USD daily chart
The In/Out of the Money Around Price (IOMAP) shows colossal resistance above $5.73 up to $6.41. The most significant support area is located between $5.38 and $5.55, a breakdown below this range can quickly push Band Protocol down to $4.5 and as low as $4 in the long-term.
BAND IOMAP chart
Additionally, it seems that the number of whales holding between 100,000 and 1,000,000 coins has dropped significantly since its peak on December 09 at 19, to a low of 14. This indicates that large holders are taking profits and exiting Band.
BAND Holders Distribution chart
The only chance for the bulls is to reconquer the 50-SMA and 100-SMA resistance points on the daily chart. A breakout above $6.3 could push Band Protocol price up to $7 as the IOMAP chart shows very little resistance from $6.3.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple's XRP set sights on $1.100 following renewed investor interest
Ripple's XRP rallied nearly 20% on Tuesday, defying the correction seen in Bitcoin and Ethereum as investors seem to be flocking toward the remittance-based token.
Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?
Dogecoin rose over 15% on Tuesday as traders anticipate a price move toward the $1 threshold following Bloomberg analyst Eric Balchunas's post regarding a DOGE exchange-traded fund.
Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF
Hedera's HBAR is up nearly 20% on Tuesday as Canary Capital submitted an S-1 registration to the US Securities & Exchange Commission for an HBAR exchange-traded fund.
Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil
Ethereum is down 1% on Tuesday despite developer Justin Drake proposing the Beam Chain, a new consensus layer that aims to ship a series of changes that will fast-track the Main chain's roadmap to faster block times and quantum resistance.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.