As the cryptocurrency market undergoes a significant price correction, Binance Coin (BNB) is poised for a notable decline. The daily chart for BNB reveals a bearish signal, suggesting that past trends might once again come into play.
BNB Technical Analysis and Upcoming Levels
Expert technical analysis indicates a bearish outlook for BNB, despite the token trading above the 200 Exponential Moving Average (EMA) on a daily timeframe. The 200 EMA is a critical indicator used by traders and investors to ascertain whether an asset is in an uptrend or downtrend.
With the recent price drop, BNB has breached the lower boundary of its consolidation zone, which was situated at a strong resistance level. Should the asset close its daily candle below the $575 mark, there is a strong likelihood that BNB’s price could decline by 15%, potentially reaching the support level of $480 in the near future.
This marks the third instance in the past three months where BNB has faced a price reversal from the $610 resistance level. Similar reversals occurred on July 21 and August 22, 2024, each resulting in a 15% price drop. The crypto community is anticipating a comparable price reversal this time around.
BNB’s Bearish On-Chain Metrics
The bearish outlook for BNB is further corroborated by on-chain metrics. According to Coinglass, an on-chain analytics firm, BNB’s Long/Short ratio currently stands at 0.827, indicating a strong bearish sentiment among traders. Additionally, BNB’s future open interest has decreased by 7% over the past 24 hours and continues to decline, reflecting diminishing interest from both investors and traders.
At present, 54.72% of top traders are holding short positions, while 45.28% are holding long positions. This on-chain data suggests that bearish traders are currently dominating the market, making a potential price decline more probable.
Current Price Momentum
At the time of writing, BNB is trading near $575, having experienced a price decline of over 4% in the past 24 hours. During the same period, its trading volume surged by 23%, indicating increased participation from crypto enthusiasts, likely driven by BNB’s bearish outlook.
In conclusion, as BNB navigates through a challenging period marked by a broader cryptocurrency market correction, its bearish technical signals and on-chain metrics suggest that further price declines may be on the horizon. Investors and traders should closely monitor these developments to make informed decisions.
