Binance Coin (BNB) has recently fallen below a critical support level, signaling a bearish trend for the cryptocurrency. After reaching an all-time high of $720.67 on June 6, BNB has steadily declined and formed a descending triangle pattern. This pattern indicates a bearish breakout and suggests that the price will continue to fall.
The current support level for BNB is at $593.90, which the coin is currently trading under. When the bulls fail to defend the support level in a descending triangle, it confirms a bearish breakout and the continuation of the downtrend. This means that sellers have overpowered buyers, leading to a decrease in the asset’s price.
Additionally, BNB’s price is currently trading below its 20-day exponential moving average (EMA), indicating a decline in buying pressure and an increase in coin distribution. This further supports the bearish outlook for the cryptocurrency.
Despite the recent price decline, long traders maintain a bullish outlook for BNB. The futures open interest for BNB has decreased by 33% since June 8, suggesting a decrease in the number of traders opening new positions. However, the funding rate for BNB remains positive, indicating that more traders hold long positions and expect the price to increase.
If selling activity diminishes, BNB’s price may rally above $600 and reach $615.10. However, if market sentiments continue to be bearish, it may push the price down towards $555.90. Traders and investors should closely monitor the price movements of BNB to make informed decisions.