BNB Price Forecast: BNB loses strength as crypto market drops

BNB edges lower by nearly 1% on Wednesday, extending the decline below the 200-day EMA.
Derivatives data signals increased long liquidations and over 5% reduction in Open Interest, indicating a bearish shift in sentiment.
The path of least resistance for BNB signals further downside risk toward $800.

Vishal Dixit FXStreet

BNB (formerly Binance Coin) loses ground as the broader cryptocurrency market falls, recording a 1% drop at the time of writing on Wednesday. Retail interest in the exchange token is declining, as evidenced by the massive wipeout of long positions and a decline in futures Open Interest. The technical outlook for BNB suggests further downside risk, as momentum indicators flash a sell signal.

Retail sentiment dims amid large liquidations

CoinGlass data shows that BNB Open Interest dropped by 5.25% to $1.39 billion over the last 24 hours, suggesting a decline in the value of outstanding futures contracts as traders close positions or reduce leverage.

A surge in long liquidations to $5.23 million over the last 24 hours, outpacing short liquidations of $220,690 by a wide margin, suggests that the wipeout of mostly bullish positions reduced capital exposure in BNB futures.

Technical outlook: Will BNB price crash to $800?

BNB price holds marginally below the 200-day Exponential Moving Average (EMA) at $883, while the 50-day EMA at $902 is sloping downward, suggesting a potential Death Cross.

The Moving Average Convergence Divergence (MACD) slips below the red line, races toward zero, widens the negative histogram, and suggests a surge in bearish momentum.

The Relative Strength Index (RSI) is at 42, crossing below the halfway line, indicating a surge in bearish momentum.

To reinstate an upward trend, BNB should resurface above the 200-day EMA at $883, which would improve the upside bias and target the 50-day EMA at $902.

However, the path of least resistance targets the S1 Pivot Point at $801, consistent with the bearish shift in momentum.

(The technical analysis of this story was written with the help of an AI tool.)

Author

Vishal Dixit

FXStreet

Vishal Dixit holds a B.Sc. in Chemistry from Wilson College but found his true calling in the world of crypto.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.