- BNB is down 2.53% in the past day
- Market sentiment for BNB has turned negative, curbing the likelihood of a new bull cycle.
Although the crypto market has seen huge gains over the past week, Binance coin [BNB] has shaped a different path.
While the market expected CZ’s release from prison to build market confidence, it has failed to reflect this. As such, BNB has seen a significant decline in its price charts over the past week.
In fact, at the time of writing, BNB was trading at $581. This represented a decline of 2.53% over the past day. Moreover, the price has fallen by 2.07% on the weekly charts.
Previously, BNB had been on an upward trend, with an increase of 8.32%.
Despite the drop, trading volume has soared over the past day, rising 15.57% to $1.8 billion.
The increase in trading activity despite the price drop has analysts talking about the altcoin’s trajectory.
To that extent a popular crypto analyst Johnny Crypto suggested a potential upward trend, citing BNB’s continued growth.
Market sentiment
In his analysis, Johncy cited BNB’s long-term rising channel to predict further gains on price charts.
Based on this analysis, the altcoin has shown consistent growth in a long-term bullish channel.
This implies that BNB has steadily increased in value over time, creating higher highs and higher lows, which generally reflect a long-term bullish trend.
Therefore, if BNB reaches the top of the ascending channel under these conditions, it could indicate strong bullish momentum and the possibility of a breakout.
As such, with the possibility of a new bullish cycle, prices could be pushed towards the channel’s highest resistance level.
What the BNB graphs indicate
While the analysis offered by Johncy offered a promising outlook for BNB, the recent price movement does not reflect this. So the broader market has borne the brunt of BNB’s thirty-day recovery.
For example, BNB’s liquidation for long positions has risen sharply over the past three days. At the time of writing, the liquidation for the long position was $1.5 million, while that for the short position was $26k.
Such a market condition suggested that those who bet on the market are being forced out of their position.
The fact that long position holders were unwilling to pay a premium to maintain their position reflected their lack of confidence in future price gains.
Moreover, the Relative Strength Index (RSI) has fallen over the past three days from 66 to 54.9 at the time of writing.
Over the same period, the RSI-based MA is above its RSI at 62, indicating that the uptrend has lost momentum. Therefore, BNB could see further correction or consolidation.
Likewise, a falling RSI suggested that the sellers were taking over the market, leading to selling pressure. So our previously observed spike in trading activity indicated a sell-off.
Finally, BNB’s Open Interest fell from $334 million to $314 million over the past three days, after rising at the start of the week.
This showed a shift in market sentiment, with investors closing their positions without new entrants.
Read Binance Coin’s [BNB] Price forecast 2024–2025
Simply put, BNB has seen a change in market sentiment from positive to negative. As such, current conditions do not support a short-term rally.
Therefore, based on prevailing market sentiment, BNB will return to the critical support level at $553 before another uptrend begins.