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.
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.
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.
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.
XRP continues to ride the momentum of its recent breakout. After shattering its previous all-time…
The Bitcoin (BTC) bullish delay, amid ongoing Ethereum (ETH) pump, has increased the odds of…
The recent success of utility tokens like Solana has demonstrated the sheer potential of blockchain…
The Pi Network community is buzzing with excitement after rumors surfaced on X that Pi…
Remittix is emerging as a major force in the crypto space, gaining traction as a…
South Korea is taking big steps to catch up with the changing crypto world. After…
