Amid an ongoing price correction across the cryptocurrency landscape, Binance Coin (BNB) is signaling a significant price decline, potentially repeating previous trends.
BNB Technical Analysis and Upcoming Levels
According to expert technical analysis, BNB appears bearish despite trading above the 200 Exponential Moving Average (EMA) on a daily time frame. The 200 EMA is a technical indicator used by traders and investors to determine the trend direction. With the recent price drop, BNB has broken the lower side of the consolidation zone, which was at a strong resistance level. If the asset closes its daily candle below the $575 level, there is a strong possibility that BNB's price could decline by 15% to reach the support level of $480 in the coming days. This is the third time this year that BNB has faced a price reversal from the $610 resistance level. Previously, on July 21 and August 22, 2024, BNB experienced a similar price reversal from this resistance level and declined by 15%. The crypto community is expecting a similar price reversal this time.
BNB's Bearish On-Chain Metrics
BNB's bearish outlook is further supported by on-chain metrics. According to on-chain analytics firm Coinglass, BNB's Long/Short ratio currently stands at 0.827, indicating a strong bearish sentiment among traders. Additionally, its future open interest has declined by 7% over the past 24 hours and has been steadily falling, indicating decreasing interest from investors and traders in the asset. Currently, 54.72% of top traders hold short positions, while 45.28% hold long positions. This on-chain data indicates that bears are currently dominating the asset, making a potential price decline more likely.
Current Price Momentum
At press time, BNB is trading near $575 and has experienced a price decline of over 4% in the past 24 hours. During the same period, its trading volume increased by 23%, indicating higher participation from crypto enthusiasts potentially due to BNB's bearish outlook.
The near-term forecast for BNB remains pessimistic, given its current technical and on-chain metrics. Investors and traders are advised to consider the ongoing trends and metrics when making further decisions.
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