Why BNB could crash 11%?
  • Binance Coin price fell below the ascending trend line support on Wednesday, signaling a breakdown of the bullish market structure.
  • According to on-chain data, BNB’s long to short ratio is below 1, indicating a bearish movement.
  • A daily close above $588.3 will invalidate the bearish thesis.

Binance Coin (BNB) broke above the ascending trend line support on Wednesday and dropped 3% on Thursday. On-chain analysis reveals that the long to short ratio is below 1, indicating bearish sentiment and suggesting that the price of BNB may decline in the coming days.

BNB Price Set to Drop After Dividing Below Uptrend Line

BNB fell below the ascending trend line support on Wednesday and is trading down 3% at $537.8 on Thursday. The trend line is drawn joining multiple swing low levels from mid-March through late June, as shown in the daily chart below.

If this trendline holds as resistance, BNB price could fall by 11% and retest the March 19 low of $495.8.

The Relative Strength Index (RSI) and Awesome Oscillator (AO) on the daily chart support this bearish theory as both indicators are below the neutral levels of 50 and 0 respectively. This suggests that the momentum is continuing in favor of the bears, which could lead to a further drop in the price of Binance Coin.

BNB/USDT daily chart

According to Coinglass, the long-to-short ratio indicator measures market sentiment and the likelihood of future price movements in the cryptocurrency market based on the relative positions of traders.

For BNB, the long-short ratio is 0.759. When this ratio falls below 1, it generally reflects bearish market sentiment. This further strengthens the bearish outlook for Binance Coin as more traders expect the asset’s price to fall.

BNB Long/Short Ratio Chart

BNB Long/Short Ratio Chart

However, if Binance Coin’s daily candle price closes above $588.3, ​​the July 1 intraday high would generate even higher highs, suggesting a market structural breakdown. This move would invalidate the aforementioned bearish theory and trigger an 8% rally from the June 12 intraday high to the previous resistance level of $635.4.


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