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Cryptocurrency News Articles
Binance Coin (BNB) Navigates Turbulent Waters, Nears Crucial Support Level
Oct 05, 2024 at 05:41 am
Binance Coin (BNB) is currently navigating turbulent waters, trading around $548 after experiencing a slight drop of 0.88% the previous day.
Binance Coin (BNB) price is currently navigating turbulent waters, trading around $548 with a slight loss of 0.88% the previous day. The market sentiment is turning cautious as BNB price hovers near a crucial support level. Analysts are keeping a close eye on BNB’s price action, as a sustained close below this key level could foreshadow further declines in the coming days.
BNB price action and key support levels
As of Thursday, BNB price is trading near an ascending trendline, a technical indicator drawn by connecting multiple low points since early August. This trendline has acted as a support for the coin, but a firm close below it could indicate a stronger bearish momentum.
If BNB price does dip below the ascending trendline and the 200-day Exponential Moving Average (EMA) at around $529.6, analysts are predicting a potential decline of about 10%, which could lead to a retest of the September 6 low, which was around $471.3.
Traders are also keeping an eye on the recent price action, as BNB price has been consistently facing rejection at its daily resistance level at $612.5. After failing to break above this level on September 27, BNB price dropped 10.6% over the next five days. This series of rejections is indicating increasing selling pressure, which is prompting traders to reassess their positions.
Technical indicators showing weakness in BNB price
Several technical indicators are reinforcing the bearish sentiment around BNB price. The Moving Average Convergence Divergence (MACD) indicator recently crossed bearish, as the MACD line crossed below the signal line. This crossover often provides a sell signal, suggesting that the bearish momentum is gaining strength. Furthermore, the MACD’s histogram bars are rising in the negative territory, indicating increasing selling pressure.
Another key indicator to watch is the Relative Strength Index (RSI). Currently, the RSI has dropped sharply to 44, falling below the neutral level of 50. A decline below this threshold usually suggests that bearish momentum is increasing, adding to the concerns about BNB’s near-term price trajectory.
On-chain data signaling a bearish outlook for BNB price
On-chain data is also painting a bearish picture for BNB, as the Total Value Locked (TVL) in the BNB ecosystem has decreased from $4.8 billion on Sunday to $4.5 billion by Thursday, reflecting a 6% decrease in activity. This declining TVL suggests that fewer users are depositing or utilizing assets within BNB-based protocols, signaling a waning interest in the ecosystem.
Moreover, data from Coin glass reveals that BNB’s long-to-short ratio stands at 0.97, indicating a bearish sentiment in the market. A ratio below one signifies that more traders are betting on a price decline, further supporting the prevailing bearish outlook for BNB.
Potential for a reversal in BNB price
Despite the bearish indicators, there is still a glimmer of hope for BNB price. If the coin finds support around the ascending trendline and manages to rise to close above $583.1—the high from Tuesday—this could invalidate the current bearish thesis. Such a recovery would likely extend BNB’s rise and present another opportunity to retest the daily resistance at $612.5.
Conclusion: Navigating uncertain waters in BNB price
As Binance Coin grapples with crucial support levels and bearish market sentiment, traders must remain vigilant. The current price action reflects the challenges BNB faces in regaining momentum, especially amidst declining TVL and unfavorable technical indicators. Investors are advised to closely monitor BNB’s price movements and key support levels in the coming days, as any decisive breaks could lead to significant shifts in market dynamics.
While the potential for recovery exists, the immediate outlook remains cautious. As always, traders should exercise prudence and consider the broader market context before making any substantial investment decisions. The next few trading sessions will be crucial in determining whether BNB can reverse its current trajectory or if further declines are on the horizon.
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The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
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