Ranking as the fourth-largest cryptocurrency globally based on market capitalization, Binance Coin (BNB) is displaying bearish tendencies with the emergence of a negative price action trend observed on its daily trading chart.
While experiencing a remarkable surge of over 25% in less than three weeks, BNB is currently grappling with significant selling pressure alongside other major cryptocurrencies.
Analysis of BNB’s Technical Data and Critical Levels
As per the technical analysis conducted by CryptoCrypto, BNB has recently developed a bearish triple top price action pattern within its daily trading chart.
Furthermore, the occurrence of an evening star candlestick pattern near the $605 resistance level further bolsters the prevailing pessimistic stance.
With historical price movements taken into account, there is a strong indication that BNB might experience a downturn of approximately 20%, potentially dropping to the $480 threshold in the upcoming days.
This negative projection for BNB remains valid as long as the cryptocurrency remains below the $625 mark, failing which could result in a shift.
Despite this, BNB continues to maintain its position above the 200 Exponential Moving Average (EMA) on a daily timeframe, signaling an ongoing upward trend.
The 200 EMA is widely utilized by traders and investors to ascertain whether an asset is navigating an upward or downward trajectory.
Significant Levels for Forced Liquidation
Presently, critical liquidation levels are situated around $593 towards the lower end and $607.5 at the upper limit, with traders identified as overly leveraged at these thresholds, as per the observations by on-chain analytics firm Coinglass.
If a further bearish sentiment dominates the market and BNB descends to the $593 level, there is an estimated liquidation of close to $280,000 linked to long positions.
On the flip side, an optimistic shift pushing the price upwards to $607.5 could trigger the liquidation of approximately $2.30 million worth of short positions.
These statistics indicate a prevalent fatigue among bullish traders, contrasting with the high activity of bearish entities in the current scenario.
Unfavorable On-Chain Trends for BNB
Concurrently, additional on-chain metrics reinforce the prevailing bearish sentiment. Coinglass’s BNB Long/Short Ratio stood at 0.871, underscoring the bearish sentiment prevailing among traders.
Moreover, the Futures Open Interest for BNB has witnessed a 3.5% decline in the last 24 hours, suggesting a reluctance among traders to initiate fresh positions.
At the time of writing, 53.44% of prominent traders have taken short positions, while 46.56% have opted for long positions, portraying the existing market sentiment.
Current Price Performance and Market Momentum
Currently, BNB is exchanging hands around $596 after experiencing a decline of over 1.4% within the past 24 hours.
During this interval, the trading volume associated with BNB plummeted by 13%, signifying reduced engagement from traders in light of the prevailing bearish climate.