- BNB price hovers near an ascending trendline; a decisive close below could signal a potential decline.
- On-chain data indicates bearish sentiment, with BNB's long-to-short ratio below one and total value locked (TVL) decreasing.
- A daily close above $583.1 would nullify the bearish outlook.
Binance Coin (BNB) is trading slightly higher at around $548 on Thursday after a 0.88% decline the previous day. It is currently positioned near a key support level, and a sustained close below this threshold could signal further declines. On-chain data reinforces the bearish outlook, as BNB’s long-to-short ratio is below one and Total Value Locked (TVL) is decreasing, indicating potential price drops in the coming days.
BNB Price Shows Weakness
BNB has repeatedly retested its daily resistance level at $612.5 but has faced rejection multiple times, including on September 27, which led to a 10.6% decline over the following five days. As of Thursday, BNB is trading slightly higher around $548, approaching its ascending trendline established by connecting several lows since early August.
Should BNB break below its ascending trendline and close beneath the 200-day Exponential Moving Average (EMA) at approximately $529.6, it could decline by 10% to retest the September 6 low of $471.3.
The Moving Average Convergence Divergence (MACD) indicator also supports the bearish sentiment, having signaled a bearish crossover on Tuesday. The MACD line has moved below the signal line, providing a sell signal, and the rising red histogram bars below the neutral line indicate that BNB may experience downward momentum.
Additionally, the daily chart’s Relative Strength Index (RSI) has dropped sharply to 44, falling below the neutral level of 50. A move below this threshold typically suggests that bearish momentum is gaining strength.
Crypto intelligence tracker Artemis data reveals that BNB’s TVL decreased from $4.8 billion on Sunday to $4.5 billion on Thursday, continuing a decline since the end of September. This 6% drop in TVL points to reduced activity and interest within the BNB ecosystem, suggesting fewer users are depositing or utilizing assets within BNB-based protocols, which adds to the bearish outlook.
Moreover, Coinglass indicates that BNB’s long-to-short ratio stands at 0.97, reflecting a bearish sentiment in the market, as more traders are betting on a price decline.
However, the bearish thesis could be invalidated if BNB finds support near the ascending trendline and closes above Tuesday’s high of $583.1. In this case, BNB would likely retest the daily resistance level at $612.5.
