- BNB price trades near an ascending trendline; a firm close below would suggest a decline ahead.
- On-chain data paints a bearish picture as BNB’s long-to-short ratio is below one, and TVL is falling.
- A daily candlestick close above $583.1 would invalidate the bearish thesis.
Binance Coin(BNB) price trades slightly higher at around $548 on Thursday after declining 0.88% the previous day. It is currently trading near key support, and a sustained close beneath this level could indicate further declines. On-chain data further supports the bearish thesis as BNB’s long-to-short ratio is below one, and Total Value Locked (TVL) is falling, suggesting a potential price decline in the coming days.
BNB price shows weakness
Binance Coin price has retested and been rejected multiple times from its daily resistance level at $612.5. It again got rejected from this level on September 27 and declined 10.6% in the next five days. As of Thursday, it trades slightly higher in the day around $548, nearing its ascending trendline (drawn by connecting multiple low levels from early August).
In case BNB breaks below its ascending trendline and closes below the 200-day Exponential Moving Average (EMA) around $529.6, it could decline 10% to retest the September 6 low of $471.3.
The Moving Average Convergence Divergence (MACD) indicator further supports BNB’s fall, signaling a bearish crossover on Tuesday. The MACD line moved below the signal line to provide a sell signal. It also shows rising red histogram bars below the neutral line at zero, suggesting that BNB’s price could experience downward momentum.
Additionally, the daily chart’s Relative Strength Index (RSI) has fallen sharply to 44, below its neutral level of 50. A cross to levels below the neutral level generally indicates that bearish momentum is gaining traction.
BNB/USDT daily chart
Crypto intelligence tracker Artemis data shows that BNB’s TVL decreased from $4.8 billion on Sunday to $4.5 billion on Thursday, constantly falling since the end of September.
This 6% decrease in TVL indicates decreasing activity and interest within the BNB ecosystem. It suggests fewer users deposit or utilize assets within BNB-based protocols, adding credence to the bearish outlook.
BNB TVL chart
Moreover, Coinglass’s BNB’s long-to-short ratio is at 0.97, indicating a bearish outlook. The ratio below one reflects bearish sentiment in the market, as more traders are betting on the asset price to fall.
BNB long-to-short chart
However, the bearish thesis would be invalidated if BNB finds support around the ascending trendline and rises to close above Tuesday’s high of $583.1. This scenario would extend the rise to retest the daily resistance level at $612.5.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: Further upside likely after hitting new all-time high
Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.
Cardano breaks above descending trendline, eyes April high as bullish momentum builds
Cardano extends gains on Friday, following a close above a descending trendline the previous day. Technical indicators and on-chain data show bullish momentum, suggesting a rally ahead.
Top 3 Price Prediction: BTC touches new all-time high near $77,000 following Fed rate cut
Bitcoin price rallied and reached a new all-time high of $76,849 following the US Federal Reserve’s 25 basis point rate cut. Ethereum and Ripple followed suit and closed above their key resistance levels, hinting at a possible rally ahead.
Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut
Fed Chair Jerome Powell stated that the FOMC lowered the Fed funds rate by 25 basis points. The rate cut comes after Bitcoin reached a new all-time high price upon Donald Trump's election victory.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.