- BNB has declined by 2.53% over the past day
The market sentiment for BNB has turned negative, slowing down possibility for another bull cycle.
As a seasoned crypto investor with years of market fluctuations under my belt, I have learned to navigate the rollercoaster ride that is cryptocurrency trading. The recent decline in BNB by 2.53% over the past day has left me with a sense of familiarity rather than surprise.
Over the last week, the crypto market has experienced significant upward momentum. However, unlike other cryptocurrencies, Binance Coin [BNB] has forged its unique trajectory.
Despite hopes that the release of CZ from prison would boost market trust, this hasn’t been evident in the recent trends. Consequently, the value of BNB has significantly decreased over the last week as reflected on its price graphs.
Currently, Binance Coin (BNB) is being traded at approximately $581. Over the last 24 hours, there’s been a 2.53% decrease. Furthermore, when looking at the weekly chart, BNB has experienced a 2.07% drop.
Prior to this, BNB had been on an upward trajectory, hiking by 8.32%.
As a researcher observing the market trends, I’ve noticed an interesting development: Although there seems to be a general decline, surprisingly, the trading volume for this specific asset has experienced a significant surge over the past day, skyrocketing by approximately 15.57% to reach a staggering $1.8 billion.
The rise in trading volume even with a drop in prices has sparked discussions among analysts regarding the future path of this altcoin.
According to well-known cryptocurrency analyst Johncy Crypto, there could be an upward trend based on the continuous increase in BNB‘s value.
Market sentiment
In his analysis, Johncy cited BNB’s long-term ascending channel to predict further gains on price charts.
Based on this analysis, the altcoin has shown consistent growth in a long-term ascending channel.
As I’ve observed, the value of BNB has consistently grown over an extended period, indicating the formation of increasingly higher peaks (high highs) and valleys (low lows). This pattern typically suggests a prolonged bullish market trend from my perspective as a researcher.
Given these circumstances, hitting the peak of the rising trendline with BNB suggests a robust bullish trend might be in play, potentially leading to a breakthrough.
Given a potential new uptrend, prices might reach or even exceed the upper limit of the current price range, acting as a form of resistance.
What BNB’s charts indicate
According to Johncy’s analysis, BNB had a positive future forecast. However, the current price trend doesn’t align with that prediction. Consequently, the overall market seems to be affected by BNB’s 30-day price recovery.
In the last three days, the amount of BNB being forcedly sold (liquidated) due to long positions has significantly increased. Currently, the liquidated value for a long position is approximately $1.5 million, whereas it’s only around $26k for a short position at this moment.
In simpler terms, this market situation led people who had wagered on it to have to sell their holdings, or exit their positions.
The unwillingness of long position holders to pay a higher price for maintaining their positions suggests they are uncertain about future price increases, implying a lack of confidence.
Furthermore, the Relative Strength Index (RSI) has decreased in the last 3 days, going from 66 down to 54.9 as of now.
For the identical timeframe, the Relative Strength Index (RSI)-based Moving Average (MA) stands higher than the RSI itself, signifying a potential slowdown in the upward trend. This could lead to continued correction or stabilization in BNB‘s price movement.
Similarly, when the Relative Strength Index (RSI) decreased, it signaled that buyers were losing ground to sellers, creating a surge of selling pressure. Earlier, our observations had pointed towards increased trading activity which seemed to be a result of sell-offs.
To summarize, the Open Interest for BNB decreased from $334 million to $314 million during the last three days, following an initial rise at the beginning of the week.
The market attitude changed, as investors were liquidating their investments without any fresh buyers stepping in.
Read Binance Coin’s [BNB] Price Prediction 2024–2025
Essentially, the feeling towards BNB in the market has shifted from optimistic to pessimistic. Given this, it seems unlikely that there will be a brief surge upward in the near future.
Given the current market mood, it’s likely that BNB will first drop towards the significant support point of around $553 before resuming its upward trend.
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2024-09-30 19:36