Binance Coin (BNB) Flashes Bearish Signals, Drops Below $590 Support; A 10% Correction to $525 Seems Imminent

The ongoing selling pressure across the cryptocurrency market has shifted the sentiment to a downtrend. Amid this, Binance Coin (BNB) has begun to show

Binance Coin (BNB) price analysis reveals a bearish outlook with the asset breaching a crucial support level and displaying bearish price action on the daily time frame.

BNB price shows bearish signals. After a period of consolidation, BNB price began to show signs of weakness as it breached a crucial support level. This support, marked by the ascending trendline and the horizontal level at $590, was crucial for BNB’s bullish structure.

Moreover, as BNB price breached this support, it formed a bearish divergence on the daily time frame. This divergence was highlighted by the price forming a higher high between September 27 and October 21, 2024, while the asset’s Relative Strength Index (RSI) formed a lower low during the same period. This divergence is typically viewed as a bearish signal.

Based on the recent price action and BNB’s historical momentum, there is a high probability that the asset will continue to decline by 10%, reaching the $525 level in the coming days.

Since July 2024, whenever BNB price has reached the $590 level, it has consistently experienced a price decline of over 12%, dropping to the $520 level or below. Hence, investors and traders are anticipating a similar price decline this time as well.

BNB’s bearish outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, the BNB Long/Short ratio is currently 0.847, the lowest it has been since October 2024. This long/short value indicates strong bearish sentiment among traders.

Additionally, BNB’s open interest has dropped by 2.1% over the past 24 hours, suggesting a lower interest from traders amid bearish sentiment. Currently, 54.6% of top traders hold short positions, while 45.4% hold long positions.

At press time, BNB price is trading near $577 and has experienced a price decline of over 3.25% in the past 24 hours. During the same period, its trading volume dropped by 5%, indicating lower participation from traders and investors compared to the previous day.

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