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Here’s what ‘happy’ BNB sellers mean for the market

2min Read

BNB sellers extended gains beyond the range low of $303. A breach below $300 could offer more shorting gains.

BNB sellers grab gains, inflict bearish breakout

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Binance Coin [BNB] sustained more losses after inflicting a bearish breakout over the weekend. It has been trading between $315.5 – $303 for the past three weeks. The weekend downswing followed Bitcoin’s [BTC] sharp drop from $27k to around $26.8k at press time. 

A weak BTC means that sellers could continue to overrule BNB’s market, unless BTC changes course during the week.

When will bulls see reprieve?

Source: BNB/USDT on TradingView

Since mid-April, BNB has been in a downtrend momentum on the lower timeframe charts, specifically the 4-hour chart. The second half of May set BNB into an extended price consolidation within $315.5 – $303. 

The short-range formation extended into early June, but sellers shredded the range low of $303 after BTC lost hold of $27k on 4 June. In addition, a trendline resistance stretches from mid-April, indicating BNB is yet to reverse its downtrend momentum. 

With the higher timeframes also firmly bearish, sellers could continue to control BNB. Southwards, the $294 and $286 levels are worth watching if the $300 psychological and support level cracks. 

Alternatively, bulls could regain a little leverage if BNB comes close above the range low of $303. However, they must clear the confluence area of the mid-range and trendline resistance near $309 to target the range high of $315.5. Such an upswing could be likely if BTC reclaims $27k and surges. 

Meanwhile, RSI hit the oversold zone while OBV dipped, highlighting a considerable decline in buying pressure and demand. 

Negative sentiment amidst whale actions

Binance Coin BNB Santiment

Source: Santiment


Is your portfolio green? Check out the BNB Profit Calculator


BNB recorded over 15 whale actions transacting >$1 million each between weekend and press time. Moreover, whale action coincided with BNB’s sharp drop from $307.8 to below $300, seen before press time. 

Similarly, trading volume has declined significantly since the end of May, dropping from over $550 million to below $400 million at press time. Sentiment also registered fluctuations in the same period but was deep in the red at press time, denoting investors’ bearish outlook.  

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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