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Binance Coin has been among the cryptocurrencies that suffered the most in today's market downturn. The price of the altcoin plunged more than 5% and declined to lows of around the $825 level. Due to the broader market weakness, testing different assets, BNB’s price has not been able to hold its ground and has slumped below key psychological support levels. However, the token has shown some signs of resilience after recovering slightly from the day's lows.
The cryptocurrency market is highly volatile at the moment, with the majority of the assets flashing red. The market capitalization has declined by 9% and is now below $2.9 trillion. Like Bitcoin and Ethereum, BNB has also suffered serious declines. The token opened the day at $866 but briefly tested $904 before facing increased selling pressure. This resulted in a sharp decline, leaving it trading below $830 at the time of writing.
Accompanying the sudden price fluctuations was a volume increase of 46%. The higher volume hints at rising market activity and infers that elevated selling pressure is, in fact, contributing to the continuing price drop. Additionally, in the last 24 hours, over $8 million worth of BNB positions got liquidated, indicating an extended degree of market stress.
The drop in the price of BNB follows a setback within the Binance ecosystem. On November 20, a major exploit hit the decentralized payment protocol GANA Payment, which lost approximately $3.1 million. This news was coupled with broader market fears and has increased the selling pressure on BNB.
From a technical viewpoint, BNB's RSI stands at 27. This suggests that the token is in an oversold position. However, the RSI's downward slope shows that the token still has room for further downside before reaching a potential reversal point. The MACD also shows a bearish outlook, reflecting the exhaustion of bullish momentum since mid-October.
Even with these signs, BNB is not devoid of any hopes for a recovery. The asset is testing key support zones at about $800; a rebound here might aim to re-challenge the $900 range. If the aforementioned $800 support zone fails to hold, further losses can drop it toward the lower support zones around $660 and $564.
The broader cryptocurrency market downturn and macroeconomic uncertainties could continue to weigh on the asset. Traders will be keenly watching the ability of the token to maintain key support levels.
A failure by BNB to keep the $800 level may lead to further correction, with the $660 support area being the next line that will be closely watched. It is expected that the coming days will be key for BNB. A recovery above $900 could indicate the start of a bounce, while continued weakness could see the token test further low levels.
Also Read: Bitcoin News Today: Is Binance Facing a Deeper Bitcoin Deleveraging Wave?
