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BNB was rejected at descending trendline resistance, signaling a potential further downside.
Metrics signal continued bearish pressure.
As a seasoned researcher with years of experience in the crypto market, I must admit that the current state of Binance Coin [BNB] is giving me a sense of déjà vu. The rejection at the descending trendline resistance and the overbought stochastic RSI are all too familiar signs that have often preceded bearish runs in the past.
The price of Binance Coin (BNB) encountered a difficult refusal at a notable downward trendline not long ago. Regrettably, the BNB supporters were unable to push the price beyond this resistance level, as shown on the TradingView graph.
The price witnessed selling pressure around the $525 level, leading to a pullback to the current price. The market has been under control of this trend line since mid-July.
As a crypto investor, I noticed that the Stochastic RSI signaled an overbought region, hinting at possible future decreases in BNB‘s price levels.
BNB metrics paint a mixed picture
Based on the net flow data from Coinglass, there has been a fluctuating pattern in Binance Coin (BNB) regarding both inflows and outflows, with recent indications showing a significant increase in outflows.
It appears that this situation might be a response to the trend line’s rebound, given that investors seem to be selling off their holdings.
The current flow indicates that users are taking out more cryptocurrencies from exchanges than they’re putting in, possibly signaling a temporary pessimistic sentiment among investors.
Although there was an uptick in withdrawals, the Funding Rates showed little preference, remaining nearly neutral. Essentially, this implies that neither BNB bulls nor bears have a clear advantage at the moment.
The situation suggested that the Funding Rate would remain unchanged, since investors appeared undecided, preferring to observe further developments in the market before deciding on their trading position.
To further elaborate, AMBCrypto’s examination of BNB‘s liquidation data reveals substantial liquidation points that are lower than the current market price at the time of this discussion.
This liquidation pool may act as a magnet to pull down its price further.
Realistic or not, here BNB’s market cap in BTC’s terms
Are further dips imminent?
Given the confluence of a robust trendline resistance, uncertain inflow-outflow dynamics, and impartial funding levels, Binance Coin (BNB) could potentially face a downtrend in the near future.
In other words, if the bulls intensify their purchasing activity and adopt a substantial long stance, the price might find balance and potentially initiate an upward trend.
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2024-08-16 01:11