Binance Coin sees a decline, but will THIS save BNB?

• BNB has declined by 2.53% over the past day
• The market sentiment for BNB has turned negative, slowing down possibility for another bull cycle.

While the crypto market has seen massive gains over the past week, Binance coin [BNB]

While, the market was expecting the release of CZ from prison to inspire market confidence, it has failed to reflect it. As such, over the past week, BNB has seen a considerable drop in its price charts.

In fact, as of this writing, BNB was trading at $581. This marked a 2.53% decline over the past day. Also, it has declined by 2.07% on weekly charts.

Prior to this, BNB had been on an upward trajectory, hiking by 8.32%.

Despite the decline, its trading volume has surged over the past day, hiking by 15.57% to $1.8 billion.

The increase in trading activity despite the price decline has left analysts talking about the altcoin’s trajectory.

Inasmuch, popular crypto analyst Johncy Crypto suggested a potential uptrend, citing BNB’s sustained growth.

Market sentiment

In his analysis, Johncy cited BNB’s long-term ascending channel to predict further gains on price charts.

Source: X

Based on this analysis, the altcoin has shown consistent growth in a long-term ascending channel.

This implies that BNB has been steadily increasing in value over time, thus forming higher highs and higher lows which usually reflect a long-term bullish trend.

Therefore, under these conditions, if BNB reaches the top of the ascending channel, it could indicate a strong bullish momentum and the possibility for a breakout.

As such, with the possibility of a new bullish cycle, the prices could be pushed towards the channel’s upper resistance level.

What BNB’s charts indicate

While the analysis offered by Johncy offered a promising outlook for BNB, the recent price movement does not reflect it. Thus, the broader market has borne the brunt of BNB’s 30-day recovery.

Source: Coinglass

For example, BNB’s liquidation for long positions has spiked over the past three days. At press time, liquidation for the long position was $1.5 million, while that of the short position was $26k.

Such a market condition suggested that those betting for the market are forced out of their position.

The fact that long position holders were not willing to pay a premium to hold their position reflected their lack of confidence in future price gains.

Source: TradingView

Additionally, the Relative Strength Index (RSI) declined over the past three days from 66 to 54.9 at press time.

Over the same period, the RSI-based MA at 62 is sitting above its RSI, suggesting that the uptrend had lost momentum. Therefore, BNB might see further correction or consolidation.

Equally, a declining RSI suggested that the sellers were taking over the market, which leads to selling pressure. Thus, our previously observed spike in trading activity indicated sell-offs.

Source: Santiment

Finally, BNB’s Open Interest declined over the past three days from $334 million to $314 million after increasing at the start of the week.

This showed a shift in market sentiment, with investors closing their positions without new entrants.

Read Binance Coin’s [BNB] Price Prediction 2024–2025

Simply put, BNB has seen a change in market sentiment from positive to negative. As such, the current conditions don’t support a short-term rally.

Therefore, based on prevailing market sentiment, BNB will retrace to the critical support level at $553 before starting an uptrend again.