BNB fails to breach $240, here’s where the coin might head next
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Binance Coin saw negative sentiment and weakened on-chain metrics in the aftermath of recent developments.
- The price charts signaled further losses were inbound and a bullish reversal was not yet in sight.
Binance Coin [BNB] suffered from volatility after news that CZ stepped down as CEO of Binance. The sentiment behind the exchange token on social media was negative and active addresses and daily transactions dropped.
BNB Chain’s TVL, fees, and revenue also declined. The token trended downward over the past few days as well. Could an uptrend be established in the coming weeks?
The former support at $240 was retested as support as BNB trended downward
The RSI on the one-day chart fell below neutral 50 on 21st November and remained below it since then. This showed a shift in momentum toward the bears. The market structure was also bearish as the former higher lows at $240 did not hold.
The Fibonacci retracement levels showed that $227.1 was important as it was the 78.6% retracement mark. However, it was being retested for the second time in a week, with a drop as deep as $222.5. This signaled that further losses were likely.
The On-Balance Volume (OBV) began to trend downward to highlight increased selling volume. To the south, the $220 support level could be important next.
The liquidations heatmap agreed with the technical findings
AMBCrypto utilized Hyblock’s liquidation levels heatmap with a look-back period of one month. It showed a huge number of liquidations would be triggered should BNB reach the $220 mark.
This level had served as resistance back in September and the first half of October.
Read Binance Coin’s [BNB] Price Prediction 2023-24
Therefore, a drop to the $215-$220 area appeared likely for Binance Coin in the coming days. It remained to be seen whether prices would reverse after sweeping the liquidity to the south.
Meanwhile, the $240 area was a place of interest should the downtrend of the exchange token reverse.