Key takeaways
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BNB price must hold $1,000 support to avoid a deeper correction to $845.
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Spot demand for CVD remains negative, indicating declining demand.
National Bank of Bahrain (BNB Bank) showed weakness on Wednesday, down 10% over the past seven days, trading at $1,072. Multiple technical indicators and onchain indicators suggest that the Binance-linked coin should hold the $1,000 support to avoid a deeper correction towards $845.
BNB bulls need to defend $1,000 support
The recent sell-off has dragged the price of BNB towards the $1,050 support level. The bulls have been struggling to push BNB above this level to avoid further losses.
“$BNB holds firm around the $1,060 support area after the recent decline.” He said BlockchainBaller analyst in a Tuesday post on X.
Buyers are showing interest here, and a move towards the $1,140 area appears possible if the price crosses the $1,107 to $1,120 range, the analyst wrote.
Related to: CZ’s YZi Labs launches $1 billion BNB fund as token reaches new highs
Note that this is where the 200 and 50 period simple moving averages currently reside. Above that, the next barrier is at the $1,180 area, which also corresponds to the 100 simple moving average.
“A clean breakout could lead to the next rally.”
On the downside, the first area of interest is between Tuesday’s low of $1,050 and the local low of $1,020 (reached on October 15).
The next line of defense is the psychological $1,000 level, an area that has served as support since September 30.
A close below $1,000 could lead to another price decline towards the second area of interest located between the 100-day EMA at $955 and the September 25 low at $930.
A deeper correction could lead to the altcoin retesting the October 11 wick around $874.
Data from Cointelegraph Pro Markets and TradingView BNB’s breakout below the descending triangle appears on the six-hour chart, as shown below.
Failure to close above the triangle support line at $1,069 could see the price continue on the downward trajectory, with a measured target at $845.
This step would raise the total losses to 21% from the current level.
pRSI It is moving below 50 and has dropped from 86 to 41 over the past two weeks, indicating increasing downside momentum.
like Cointelegraph reportedA drop below the $1,020 support level may indicate that the BNB/USD pair may have reached a short-term top.
The CVD of a spot buyer of BNB indicates high sales volume
Analysis of the 90-day spot receiver cumulative volume delta (CVD) reveals that sell orders (sell receiver) are once again becoming dominant. CVD measures the difference between buying and selling volume over a three-month period.
Since Friday, selling pressure has dominated the order book, after the BNB/USD pair reached an all-time high of $1,375.
Negative CVD (red bars in the chart below) indicates profit taking among traders, indicating declining demand as sellers take control.
If the CVD remains red, it means that sellers are not pulling back, which could pave the way for another wave of downward movement, as seen in historical corrections.
The chart above indicates that more sell orders are placed in the market than buy orders, with the majority making profits at current prices. In other words, there is currently more supply than demand, which generally indicates that the price may extend its correction.
like Cointelegraph reportedcontinued outflows from cryptocurrency exchange Binance pose risks to BNB, limiting its upside potential.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
