Advertise
Zameer Attar
Zameer Attar
Author
- Sep 25, 2024 17:46 UTC
-
Triple Top Spotted on BNB, Eyes on 18% Price Decline
Binance Coin (BNB) now appears bearish and a price decline may be seen in the coming days.
BNB could decline by 18% to reach the $480 level in the coming days.
BNB’s Long/Short ratio currently stands at 0.869, indicating a strong bearish sentiment among traders.
Following an impressive price surge of over 25%, Binance Coin (BNB) now appears bearish and a price decline may be seen in the coming days. The negative outlook for BNB is likely due to the formation of a bearish price action pattern on the daily chart and concerning on-chain metrics.
BNB Technical Analysis and Upcoming Levels
According to CoinPedia’s technical analysis, BNB has formed a bearish triple-top price action pattern on its daily chart, which investors and traders consider a negative sign. Based on the data, when an asset forms a triple-top pattern over a longer period, a significant price decline typically follows.
In addition to this pattern, BNB has been forming a bearish evening star candlestick pattern near the resistance level of $605. The evening star is a bearish reversal pattern that suggests a potential shift from an uptrend to a downtrend. This combination of a bearish pattern and the evening star on the asset has begun to shift market sentiment among traders.
Based on historical price momentum, there is a strong possibility that the BNB price could decline by 18% to reach the $480 level in the coming days. However, this bearish thesis will only hold if BNB remains below the $620 level, otherwise, it may fail.
BNB’s Bearish On-chain Metrics
Besides this technical analysis, the current negative outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, BNB’s Long/Short ratio currently stands at 0.869, the lowest since August 27, 2024. This indicates a strong bearish sentiment among traders.
Additionally, its open interest declined by 7% in the last 24 hours, indicating growing fear among traders, likely due to the bearish price action pattern. Currently, 53.71% of top traders hold short positions, while 46.29% hold long positions.
While combining all of BNB’s on-chain metrics with its price action, it appears that bears are dominating the assets and may cause a significant price decline in the coming days.
Current Price Momentum
At press time, BNB is trading near $590 and has experienced a price decline of over 2.75% in the last 24 hours. Meanwhile, its trading volume has declined by 12% during the same period, indicating lower participation from traders and investors.
Yes 
No 
