Binance Coin (BNB) Struggles to Stay Afloat, Drops 4.24% in a Day, Weekly Chart Shows Rising Wedge Pattern

The crypto market is struggling with Binance Coin (BNB) in the red zone. At press time, BNB price was trading at $666.30.

Binance Coin (BNB) price is showing signs of a potential drop from current levels, as indicated by a rising wedge pattern and decreasing futures open interest.

At press time, BNB price was trading at $666.30, down 4.24% in the past 24 hours. The token price experienced a drop of 8.45% over the past week and now trades within a narrowing range.

BNB焼付き total market cap stood at $97.26 billion, with a circulating supply of 150 million tokens. The 24-hour trading volume for the token was recorded at $1.15 billion.

Rising Wedge Formation Indicates Bearish Outlook

A closer look at BNB’s weekly chart reveals a rising wedge pattern, a technical structure that often signals a potential bearish reversal. The pattern is characterized by higher highs and higher lows within converging trendlines, indicating weakening bullish momentum as the price narrows into a tighter range.

BNB has currently broken out of the wedge at $666.30, putting it in a critical zone as it is now near the wedge’s lower boundary. If a breakdown below this level is confirmed the bear trend becomes stronger, and the next potential support level appears to be around $563.

On the plus side, key resistance points come in at $740 on the upper wedge line of the trend and the $800 psychological point.

According to The Crypto Titan’s analysis, BNB’s price action is forming a narrowing wedge pattern, indicating a potential loss of bullish momentum. The analysts are highlighting a possible sell position at the lower boundary of the wedge, between $665 and $670.

A breakdown below this zone would indicate a bearish continuation, with the price expected to drop faster, aiming for a target at $563. Such a breakdown could put additional pressure on BNB’s price, potentially causing it to retest the lower boundary as resistance before continuing to move down.

Futures Market Reflects Mixed Sentiment

Meanwhile, data from Glassnode shows a decrease in BNB Futures open interest, which has tapered off after hitting peak levels. This reduction is accompanied by a drop in the total value locked in Futures contracts, suggesting reduced activity in the derivatives market.

Long liquidations were most important during December, hitting a peak of $9.79 million. But recent weeks have seen a more level liquidation balance between longs and shorts, representing shifting to a neutral market position.

A combined legacy of reduction in leverage, healthy preservation of the market, and normalization of long and short liquidations, and steady trading volume.

The rise wedge pattern is still indicating possible bearish tendencies in the technical setup of BNB. Mixed sentiment reigns as leverage reduces in the derivatives market trends, which contributes to uncertainty.

A breakdown below $665 to $670 will be watched keenly by traders. It could be the start of a deeper decline. However, this would reverse the bearish bias, provided the resistance was reclaimed at $740 and above.