Key Takeaways
What triggered BNB’s 12% price drop today?
BNB’s decline was driven by broader market weakness, including sharp drops in Bitcoin and Ethereum, and escalating U.S.–China trade tensions.
What key level could determine BNB’s next move?
If BNB fails to hold the $1,040 support, it could drop another 14% toward the $900 mark.
Binance Coin [BNB] dropped 12%, at press time, increasing selling pressure and bringing the asset close to a critical breakdown level that could trigger further losses.
Despite the decline, BNB was trading near $1,040, with investor interest remaining strong, reflected in a 25% surge in trading volume to $6.72 billion over the past 24 hours.
Looking at the current market sentiment and ongoing trade war, you might be wondering where the BNB price could go next. Will the price continue to decline, or is a reversal on the cards?
BNB technical outlook and key levels to watch
AMBCrypto’s technical analysis reveals that BNB has formed a bearish double-top pattern on the daily chart and is now approaching the $1,050 neckline.
Based on current price action, if BNB fails to hold this level, it could drop 14%, potentially reaching the $900 mark.
Source: TradingView
However, at press, the Average Directional Index (ADX) value had reached 29, above the key threshold of 25. This indicates that the asset has strong directional momentum.
Despite the price fall and weak market sentiment, BNB still maintains itself above the 200 Exponential Moving Average (EMA). This indicates that the asset is still in an uptrend.
BNB’s major liquidation level
Given the current market sentiment, BNB derivatives have shifted significantly, but traders with a bullish outlook continue to dominate.
According to CoinGlass, BNB’s major liquidation levels stand at $1,009.5 on the lower side and $1,106.1 on the upper side.
At these levels, traders are overleveraged, having built $32.10 million in long positions and $28.49 million in short positions over the past 24 hours.
Source: CoinGlass
When combining these metrics, it appears that BNB is still in an uptrend. However, a fall below $1,040 could bring further downside.
