Bearish sentiment around Binance Coin [BNB] is growing as the asset has broken below a key support level. Traders are increasingly betting on short‐leveraged positions, while overall market sentiment has turned more negative.
This shift has not only weakened BNB’s outlook but also raised the risk of further declines in the days ahead.
At press time, BNB had dropped 10% in the past 24 hours, trading at $697. Notably, trading volume surged 40% to $3.75 billion, signaling a sharp rise in market participation that has caught the attention of crypto enthusiasts.
This massive rise in volume alongside the sharp price decline suggests that both traders and investors are actively engaging with the current trend.
As the price continued to fall, a well-followed crypto expert shared a post on X, making a bold prediction. In the post, the expert noted,
“The chart looks weak, and if it loses $650, it is likely to revisit the $400 support level.”
BNB price action and key levels
Looking at the weekly chart, the BNB has lost control of a strong key support formed by an ascending trendline it had been holding since November 2023.
However, the price is currently hovering near the horizontal support level of $685, and a sustained decline in BNB is raising questions about when this downside momentum will end.
Based on the current price action, if BNB’s downside momentum continues and the price closes a daily or weekly candle below the $675 level, it could see a sharp drop of another 10%, potentially reaching the $610 level in the coming days.
However, a reversal may only be possible if BNB sustains above the $675 level.
At the time of writing, the asset was trading below the 200-day Exponential Moving Average (EMA) on the daily chart, suggesting that BNB’s broader trend is bearish.
Meanwhile, the Average Directional Index (ADX), an indicator that measures trend strength, has reached 32.90, above the key threshold of 25, indicating a strong directional trend.
Investors and traders turn bearish
Investors and long‐term holders often take advantage of price dips to accumulate heavily.
In this case, however, the top 100 wallet addresses have kept their holdings unchanged, indicating they are avoiding new purchases for now, according to on‐chain analytics platform Nansen.
However, intraday traders are strongly following the current trend, according to the derivatives analytics platform CoinGlass. At press time, data revealed that traders were over-leveraged at $683.2 on the downside and $728 on the upside.
At these levels, they have built $4.93 million worth of long-leveraged positions and $21.21 million worth of short-leveraged positions. These bets by intraday traders point to a strong bearish conviction among market participants.
Final Thought
- Following a 10% drop, BNB has lost the key support of its ascending trendline.
- Derivatives data reveal that intraday traders were heavily betting on short-leveraged positions, indicating they believe BNB is unlikely to move above the $728 level.
