BNB prices set to descend after the sweep of $250 as…
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The market structure of Binance Coin remained bearish on the higher timeframe.
- The hopeful foray above $250 turned out to be a liquidity hunt.
Binance has faced a rough time in the market in recent weeks. The exchange faces pressure from regulatory authorities across different countries. As a consequence, its market share dropped to a one-year low.
Read Binance Coin’s [BNB] Price Prediction 2023-24
On the price chart, the exchange token Binance Coin [BNB] had a bearish outlook in the 1-day timeframe. It appeared likely that the token would drop further, toward $220 or lower in the coming weeks.
The bulls trap at $255 highlights the market sentimentThe 1-day chart showed a bearish structure that formed on 8 May, after the drop below $315.3. This level was a previous higher low. Binance Coin was stuck within a range formation in May. Thereafter, BNB formed a series of lower highs and lower lows on the market.
This trend continued in June. While the daily timeframe showed bearish momentum, the 4-hour chart showed signs of bullishness. Buyers had a brief victory when BNB prices pumped past $250, but could not defend the level.
Binance Coin dropped beneath $240 shortly after that. Meanwhile, the RSI on the 1-day chart remained well below neutral 50, showing strong bearish momentum. The OBV was fighting to climb higher but has not made significant headway in the past two weeks.
The weighted sentiment remained negative as BNB holders suffer lossesThe weighted sentiment behind a crypto asset generally has a positive correlation with price movements. At the time of writing, the sentiment was negative behind BNB, which was not surprising given the price trend.
Realistic or not, here’s BNB’s market cap in BTC terms
The 90-day MVRV ratio noted that holders were deep in the red territory. It can be argued that the asset was undervalued according to the MVRV but this does not mean Binance Coin will see a bounce soon. The funding rate was negative during the drop but has recently climbed back above zero.
Overall, the market sentiment remained bearish and sellers were dominant in the higher timeframe. If BNB falls beneath the $225-$230 area, $220 and $205 are the next support levels to watch.