Binance Coin (BNB) has experienced a significant drop of over 10% in value over the past seven days. Since August 23, BNB has been trading below a descending trend line, confirming its decline.
The technical indicators suggest further losses could occur for BNB in the short term. With bullish momentum waning, BNB might revisit its 30-day low.
Currently, BNB is trading at $505.65, down from its monthly peak of $600 on August 23. The Moving Average Convergence/Divergence (MACD) indicator shows BNB's MACD line (blue) below both its signal line (orange) and the zero line, indicating a potential for further declines.
The MACD line being below both the signal and zero lines confirms a strong bearish sentiment. This suggests traders might exit long positions and consider short positions. Additionally, BNB's Directional Movement Index (DMI) shows the negative directional indicator (-DI) above the positive directional indicator (+DI), reinforcing the bearish outlook.
In BNB's derivatives market, futures open interest has decreased by 18% since the price started trading below the descending trend line. This indicates traders are closing positions and exiting the market.
If BNB's buying pressure weakens, its price could fall below $500, potentially reaching $475.90. Conversely, if market sentiment turns positive, BNB could rally to $522.90.
