- Market sentiment around BNB turned bearish in the last few days.
- In case of a bullish trend reversal, BNB might target $744 first.
Like most cryptos, BNB bulls also controlled the market last week by pushing the coin’s price up to double-digits. However, the bullish trend didn’t sustain as the coin fell victim to a correction in the last 24 hours. Will this put an end to BNB’s upward rally?
BNB’s 10% weekly surge!
CoinMaerketCap’s data revealed that BNB’s price rallied by 10% last week, pushing the coin’s price to $721. With this, the coin boasted a market capitalization of nearly $104 billion.
Meanwhile, Binance Research posted a tweet highlighting major developments in the crypto space.
The tweet mentioned the declining BTC dominance, and a 6% rise in the DeFi TVL sector. Apart from this, the tweet also mentioned that the crypto market entered the “extreme greed” phase as the fear and greed index had a reading of 80%.
This greed in the market had a negative impact on BNB’s price action. The coin’s value plummeted by over 2% in the past 24 hours.
The recent bearish price action also had a negative impact on the coin’s social metrics. For instance, after a sharp increase, BNB’s social dominance fell, indicating a decline in its popularity.
A similar trend was also noted on its weighted sentiment graph — an indication of rising bearish sentiment in the market.
Source: Santiment
Will this downtrend continue next week?
To see whether BNB is poised for a continued price decline, AMBCrypto assessed the coin’s other datasets. We found that the coin’s long/short ratio registered a slight uptick in the 24-hour timeframe. This meant that long positions were increasing compared to short positions in the market, which usually signals a possible price rise.
Additionally, the coin’s trading volume also dipped by 33% in the last 24 hours, which also suggested a bullish trend reversal in the coming days. However, not everything was working in the coin’s favor. BNB’s Relative Strength Index (RSI) moved southward.
Additionally, the Chaikin Money Flow (CMF) took a sideways path, meaning that no notable buying activity was happening. When such episodes happen, they hint at more days of slow-moving price action.
Source: TradingView
In case the coin’s price continues to decline, investors might witness the coin dropping to $710. However, if the bulls buckle up and lift the coin’s price up, it might touch $744 again. This was the case as BNB faces a strong liquidation barrier at that level.
Read Binance Coin’s [BNB] Price Prediction 2024–2025
Whenever liquidation rises, it often results in price corrections. Therefore, it will be crucial for BNB to go above that level in order to eye higher targets.
Source: Coinglass
