Binance Coin (BNB) Crashes Below Key Zones as Liquidations Hit Record Highs

Binance Coin [BNB] has experienced a notable downturn of late, mirroring the broader market's decline, with its price falling for six consecutive days.

Binance Coin (BNB) has faced difficulties amid the broader market downturn, with its price falling for six consecutive days and reaching one of the highest liquidation volumes.

BNB’s downturn began on 31 July with a drop of over 2%, bringing its price to around $576. This marked the start of a sustained period of decline, spanning six consecutive days during which BNB lost over 26% of its value.

The most substantial single-day drop occurred on 5 August, with a 6.48% decline that reduced its price to approximately $464.

This sequence of losses pushed BNB’s Relative Strength Index (RSI) below 30. However, recent data suggested a slight recovery, with BNB up over 3% at press time, elevating its price to the $478 range. Correspondingly, its RSI has slightly increased, moving just above 30. Despite this minor rebound, the data indicates that the bearish trend for BNB remains strong.

The recent downturn in BNB’s price has triggered a significant spike in liquidations among traders, per data from Coinglass. The BNB total liquidation volume escalated by nearly $9 million during this period, marking the highest liquidation volume recorded since April.

A closer examination of the data revealed that long positions were particularly hard hit, accounting for over $6.8 million of the total liquidations. This suggested that many traders anticipated a price increase or stability. In contrast, short liquidations, which occur when traders bet against the market, amounted to around $2.1 million.

The press time state of BNB’s Funding Rate, standing at -0.0170% at press time, provided a clear indicator of prevailing market sentiment, which appeared to be predominantly bearish.

This negative Funding Rate implied that sellers controlled market dynamics. So, the cost to maintain long positions exceeded that for shorts, essentially rewarding traders who held short positions. Despite the recent minor BNB price recovery, the persistently negative Funding Rate indicated that this bounce had not been sufficient to shift overall trader sentiment from bearish to bullish.

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