- Binance Coin (BNB) faces resistance at $240, with technical analysis indicating a likely decline to the $215-$220 area.
- On-chain metrics and market sentiment appear bearish, suggesting increased selling pressure and a potential drop in value.
BNB’s Current Market Position
Binance Coin (BNB), the native cryptocurrency of the Binance exchange, is currently facing a challenging market environment. After recent news about Changpeng Zhao (CZ) stepping down as CEO of Binance, the coin has experienced heightened volatility. This leadership change has sparked negative sentiment in social media discussions surrounding BNB, impacting its on-chain metrics and daily transaction activity.
Technical Analysis: A Bearish Outlook
The technical analysis of BNB’s price charts paints a bearish picture. The Relative Strength Index (RSI) on the daily chart dropped below the neutral 50 mark on November 21 and has stayed below this level, indicating a bearish momentum. Furthermore, the market structure turned bearish as BNB failed to sustain its former higher lows at the $240 support level, which has now turned into a resistance.
The Fibonacci retracement tool highlights $227.1 as a critical level, corresponding to the 78.6% retracement mark. However, with BNB retesting this level for the second time in a week and dropping as low as $222.5, there is an increased likelihood of further losses. The On-Balance Volume (OBV) also shows a downward trend, suggesting a growing selling volume.
Potential Support at $220
Looking at potential support levels, the $220 mark stands out as the next significant level. This price point previously acted as resistance in September and early October. AMBCrypto’s utilization of Hyblock’s liquidation levels heatmap, with a one-month look-back period, confirms that a large number of liquidations could be triggered if BNB reaches this level.
Conclusion: A Testing Time for BNB
As Binance Coin navigates through these market conditions, a drop to the $215-$220 area seems likely in the coming days. The $240 area, on the other hand, remains a point of interest for a potential reversal of the current downtrend. Investors and traders in BNB will be closely watching these levels to gauge the future direction of the cryptocurrency.