BNB has seen a decline over the past week, dropping by 2.53% in 24 hours.
- BNB has declined by 2.53% over the past day The market sentiment for BNB has turned negative, slowing down possibility for another bull cycle.
While the crypto market has seen massive gains over the past week, Binance coin [BNB] has shaped a different path.
While, the market was expecting the release of CZ from prison to inspire market confidence, it has failed to reflect it. As such, over the past week, BNB has seen a considerable drop in its price charts.
In fact, as of this writing, BNB was trading at $581. This marked a 2.53% decline over the past day. Also, it has declined by 2.07% on weekly charts.
Prior to this, BNB had been on an upward trajectory, hiking by 8.32%.
Despite the decline, its trading volume has surged over the past day, hiking by 15.57% to $1.8 billion.
The increase in trading activity despite the price decline has left analysts talking about the altcoin’s trajectory.
Inasmuch, popular crypto analyst Johncy Crypto suggested a potential uptrend, citing BNB’s sustained growth.
Market sentiment
In his analysis, Johncy cited BNB’s long-term ascending channel to predict further gains on price charts.
Source: X
Based on this analysis, the altcoin has shown consistent growth in a long-term ascending channel.
This implies that BNB has been steadily increasing in value over time, thus forming higher highs and higher lows which usually reflect a long-term bullish trend.
Therefore, under these conditions, if BNB reaches the top of the ascending channel, it could indicate a strong bullish momentum and the possibility for a breakout.
As such, with the possibility of a new bullish cycle, the prices could be pushed towards the channel’s upper resistance level.
What BNB’s charts indicate
While the analysis offered by Johncy offered a promising outlook for BNB, the recent price movement does not reflect it. Thus, the broader market has borne the brunt of BNB’s 30-day recovery.
Source: Coinglass
For example, BNB’s liquidation for long positions has spiked over the past three days. At press time, liquidation for the long position was $1.5 million, while that of the short position was $26k.
Such a market condition suggested that those betting for the market are forced out of their position.
The fact that long position holders were not willing to pay a premium to hold their position reflected their lack of confidence in future price gains.
Source: TradingView
Additionally, the Relative Strength Index (RSI) declined over the past three days from 66 to 54.9 at press time.
Over the same period, the RSI-based MA at 62 is sitting above its RSI, suggesting that the uptrend had lost momentum. Therefore, BNB might see further correction or consolidation.
Equally, a declining RSI suggested that the sellers were taking over the market, which leads to selling pressure. Thus, our previously observed spike in trading activity indicated sell-offs.
Source: Santiment
Finally, BNB’s Open Interest declined over the past three days from $334 million to $314 million after increasing at the start of the week.
This showed a shift in market sentiment, with investors closing their positions without new entrants.
Simply put, BNB has seen a change in market sentiment from positive to negative. As such, the current conditions don’t support a short-term rally.
Therefore, based on prevailing market sentiment, BNB will retrace to the critical support level at $553 before starting an uptrend again.
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