Binance Coin (BNB): Why Another 20% Decline Isn’t a Surprise

  • Binance Coin left uncollected downside liquidity, suggesting further decline for the token.
  • Violating the demand region at $253 – $308 will see bears sweeping $222 for liquidity.
  • Recoveries beyond the $336 range low will cancel BNB’s bearish thesis.

Binance Coin sees its price rebounding from a steady demand region that paused its bleed. Nevertheless, untapped downside liquidity might attract bears to ruin the support floor. For now, BNB seems primed for further declines.

Binance Coin Indecisive

The past five days saw Binance Coin losing approximately 31% of its value to explore the $276 mark. The downside spiral paused as the altcoin dipped inside the demand zone at $253 – $308. As buyers appear to struggle amid intensified selling momentum, BNB will likely decline.

If the alternative coin forms a 3-day candle closing beneath $253, it will indicate a breakout, catalyzing a 13% plunge towards the nearest support floor of $222. Binance Coin will likely sweep beneath this zone to gather liquidity.

Though bears might have some respite here, the downward wave might stretch towards the $182 footing. That would mean a 34% total crash from BNB’s current position. As Bitcoin price hasn’t gathered liquidity beneath its January 2021 low, the chances of this bearish move playing out remained high.

Meanwhile, improved sentiment in the crypto space would trigger an upside. Binance Coin rebounding from the demand zone at $253 – $308 would print a different narrative. A recovery wave that forms a 3-day candlestick closing beyond $336 will cancel the bearish case for BNB. That could see higher actions to gather liquidity beyond the equal peaks of $413, then $432.

For now, BNB’s road with little resistance is the downside. All odds support bearish price action for the alternative token. Moreover, the broad market continued to weaken amid ugly economic conditions.

Why writing this content, the global market cap of all digital tokens hovered at 1.20 trillion, dropping more than 10% over the previous day. Moreover, the market remained susceptible to further crashes. Such developments support BNB’s bearish outlook, amplifying the chances of hitting its downward targets.

Editorial credit: K.unshu / shutterstock.com

By Edward Richardson
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