Binance Coin (BNB) faces increasing bearish pressure after breaking a key support level, dropping 10% to $697. Trading volume surged 40% to $3.75 billion, indicating heightened market activity. Analysts warn that a break below $650 could lead to a decline toward $400, while on-chain and derivatives data show top holders are not buying and traders are heavily shorting the asset.
Bearish sentiment around Binance Coin [BNB] is growing as the asset broke below a key support level. Traders are increasingly betting on short-leveraged positions, while overall market sentiment has turned negative.
At press time, BNB had dropped 10% in the past 24 hours, trading at $697. Trading volume surged 40% to $3.75 billion, signaling a sharp rise in market participation.
A well-followed crypto expert shared a post on X, making a bold prediction. In the post, the expert noted, “The chart looks weak, and if it loses $650, it is likely to revisit the $400 support level.”
On the weekly chart, BNB lost control of a strong key support formed by an ascending trendline held since November 2023. The price is currently hovering near the horizontal support level of $685.
If BNB’s downside momentum continues and closes below $675, it could drop another 10% toward $610. A reversal may only be possible if BNB sustains above the $675 level.
The asset was trading below the 200-day Exponential Moving Average on the daily chart, suggesting a bearish broader trend. The Average Directional Index reached 32.90, indicating a strong directional trend.
The top 100 wallet addresses have kept their holdings unchanged, according to on-chain analytics platform Nansen. This indicates they are avoiding new purchases for now.
Data from the derivatives analytics platform CoinGlass revealed traders were over-leveraged at $683.2 on the downside and $728 on the upside. At these levels, they built $4.93 million in long positions and $21.21 million in short positions.
