Similar to the majority of cryptocurrencies, BNB experienced a bullish trend last week, driving its price up by a double-digit percentage. Nonetheless, this upward momentum was short-lived as the coin faced a correction within the last 24 hours. Will this downturn halt BNB’s recent rally?
BNB’s Impressive 10% Weekly Increase!
According to data from CoinGecko, BNB witnessed a 10% surge in price last week, propelling its value to $721. This surge led to the coin achieving a market capitalization of nearly $104 billion.
Simultaneously, Binance Analysis tweeted about significant developments in the cryptocurrency sector.
The tweet highlighted a decline in Bitcoin’s dominance and a 6% rise in the DeFi Total Value Locked (TVL) sector. Additionally, it noted that the crypto market had entered an “extreme greed” phase, with the Fear and Greed Index registering a reading of 80%.
This increased market greed had a negative impact on BNB’s price performance, resulting in a 2% drop in its value over the past 24 hours.
Moreover, the recent bearish price movement influenced BNB’s social metrics negatively. Following a notable uptick, BNB’s social dominance decreased, indicating a wane in its popularity.
A similar pattern was observed on its weighted sentiment chart, suggesting a rise in bearish sentiment across the market.
Is the Downtrend Likely to Persist Next Week?
To determine if BNB is inclined towards further price decline, CryptoInsights analyzed other data points associated with the coin. An assessment revealed a slight increase in BNB’s long/short ratio over the 24-hour period, indicating a rise in long positions relative to short positions in the market, typically signifying a potential price upswing.
Furthermore, BNB’s trading volume decreased by 33% in the past 24 hours, pointing towards a possible reversal towards a bullish trend in the upcoming days. However, not all indicators favored BNB, as the Relative Strength Index (RSI) for the coin trended downwards.
Additionally, the Chaikin Money Flow (CMF) displayed a sideways movement, implying minimal significant buying activities. Such periods usually suggest prolonged phases of slow price action.
If the downward trajectory continues, investors may witness BNB dropping to $710. Conversely, should the bulls step in and push the coin’s value higher, it could retest $744, a crucial level where strong liquidation barriers exist.
Increased liquidation often leads to price corrections. Hence, surpassing this level will be essential for BNB to target higher price levels.