Binance Coin [BNB] Price Analysis: BNB Risked Bearish Reversal Despite 5% Surge in 24 Hours

Binance Coin [BNB] was the top gainer among the ten largest cryptos by market cap, after surging by more than 5% in the last 24 hours.

Binance Coin [BNB] witnessed a relative surge among the top ten cryptos, as far as market cap is concerned. It noted gains to the tune of over 5% in the last 24 hours.

At press time, BNB was valued at $533, which was a significant rise from the 24-hour low of $503. However, despite these gains, BNB risked a bearish reversal if the broader market failed to sustain the bullish trend.

Is BNB set for a bearish reversal?

The price movement of BNB seemed to be mirroring that of Bitcoin [BTC]. Hence, the token’s ability to sustain gains depended on the broader market’s ability to maintain positive sentiment.

A possible bearish divergence was observed on BNB’s daily chart. While the price was noted to be rising, technical indicators hinted at a weakness in the uptrend after BNB formed a double-top pattern on the daily chart.

The first peak was formed in late July, as the price rose from below $500 to meet a key resistance at $600, following which a downtrend ensued to form a neckline at $464.

The uptrend resumed, but failed once again after hitting $600.

A BNB bearish breakout will be confirmed if it falls below the support of $464. However, if the current uptrend is sustained and BNB breaks resistance above the second peak, this bearish thesis will be invalidated.

The Relative Strength Index, at 47, showed that despite the gains, sellers still had the upper hand. The RSI line needed to cross above the signal line to confirm the bullish momentum and invalidate the double-top pattern.

Another key indicator that pointed towards a weakening uptrend was the Directional Movement Index (DMI). The positive DI (blue) remained below the negative DI (orange), which showed a potential bearish reversal.

Data from Hyblock Capital showed a high concentration of liquidations at $548. Hence, this level could serve as a strong resistance point if traders who bought into the rally were to book profits once BNB approached $548 to cut losses.

BNB Chain witnesses declining usage

The BNB Chain also saw a decreased utilization, which could further hamper BNB’s ability to rally.

According to data from DappRadar, the number of unique active wallets on the network dropped by 25% over the last seven days. Furthermore, volumes decreased by over 30%, falling from around $850M to $350M.

Read Binance Coin’s [BNB] Price Prediction 2024–2025

This declining network usage could indicate a waning market interest in BNB.

Data from Coinglass showed that BNB’s Funding Rates were mostly negative over the last month, indicating a general bearish sentiment among traders.

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