- BNB breaks trendline support, risking a decline to $500 if the retest fails to hold.
- Market sentiment is mixed, with long positions rising despite high liquidation pressure.
- Holding above $611 could signal recovery, while failure may push BNB toward $565 support.
Binance Coin (BNB) has experienced significant price action in recent days. The cryptocurrency saw a sharp decline, falling below key support levels as market conditions remained volatile. As of press time, BNB traded at $570.78, marking a 7.25% drop in a single day. The market cap now stands at $81.32 billion, reflecting a 6.95% decrease, while daily trading volume increased slightly by 1.21% to $2.12 billion.
BNB failed to remain above $600 after its unsuccessful attempt at crossing past $700 resistance earlier this month. The price drop follows a trendline breakout, with BNB now retesting crucial levels. The continued bearish pressure might result in an additional price decline to potentially reach $500.
Source: TradingView
Technical indicators show that BNB is facing strong resistance near $611. Failure of BNB to maintain its current price level will potentially trigger a further decline toward $500. The Relative Strength Index (RSI) shows a value of 34 which indicates BNB is moving toward an oversold territory. This suggests a potential brief recovery before likely encountering resistance points at $647 and $685.
Historically, BNB has shown resilience during bear markets. During the 2021–2022 downturn, it recovered faster than Bitcoin and Ethereum. It also outperformed these assets during liquidity crises. In August 2024, BNB dropped 18.5% but still held stronger than most major cryptocurrencies. This past performance suggests potential stability, even in the current decline.
Recently, BNB saw increased liquidation activity. Data from Coinglass shows $2.73 million worth of liquidations in the past 24 hours, with $2.64 million from long positions. Despite this, the long-to-short ratio has increased to 1.3992. This indicates that traders are still expecting a rebound. Around 58% of positions are now long, reflecting investor optimism.
Related: BNB Reclaims Fifth Spot in Market Cap with Major Upgrades
Recent BNB market performance aligns with broader market volatility. The cryptocurrency market experiences ongoing price corrections, which stem from major economic factors and changes in market sentiment. The current crypto market downturn follows the United States’ decision to enforce trade taxes against Canada and Mexico.
This development has led to increased volatility across financial markets. Additionally, Federal Reserve policy shifts and liquidity concerns have added to investor caution. If BNB manages to reclaim $611, it could attempt a push toward $647. Resistance levels to watch are $611, $624.5, and $631.6. However, if downward pressure persists, further declines to $500 are possible.
