After a significant surge that almost reached $800 in December, Binance’s native token, BNB, has retraced and currently hovers around the $700 mark.
The latest market data indicates a slight pullback as the altcoin eases from its all-time high of $793. Investor sentiment seems to be veering towards profit-taking amid uncertainties surrounding the upcoming Fed rate decision.
Amidst these fluctuations, the crucial question emerges: Can BNB maintain its position above $700?
Predicting BNB’s Performance: Is $700 a Solid Support?
Over the past few months, BNB’s price movement has adhered to an upward channel pattern. Recent price actions near the 4-hour 50EMA have hinted at a potential retreat towards the lower end of the channel.
Currently, BNB’s price remains above the moving average and mid-range, though signs of weakening demand are evident through tepid RSI readings. A breach below the $700 mark could be on the horizon if the moving average fails to provide adequate support.
Technical indicators like the ADX also suggest a loss in price momentum, underscoring the possibility of a downtrend towards $700 or even lower levels.
Whales Adjust BNB Exposure
Market analysis reveals that large traders, colloquially known as ‘whales,’ increased their holdings during BNB’s earlier surge in December but have since scaled back their positions in tandem with the recent price correction.
Moreover, a broader decline in Open Interest in the futures market—from $800 million to $433 million—hints at a prevailing bearish sentiment among investors.
Given these trends, the question remains: Will the subdued market sentiment drive BNB below the critical $700 threshold?
A closer look at liquidation levels indicates that short positions are clustered around $734 and $750, while leveraged longs are concentrated near $690. Market dynamics suggest a probable hunt for stop-loss orders among leveraged long positions, which could potentially push BNB below $700 before targeting higher liquidity zones upwards.
In summary, the current weak demand from major players and the prevailing sentiment could escalate the downside momentum for BNB, risking a breach below $700. Nonetheless, improved market sentiment might trigger a reversal, with key resistance levels at $734 and $750 coming into focus.
Disclaimer: The views expressed in this analysis are strictly personal opinions and should not be considered as financial or investment advice.