- BNB’s break of structure and change of character confirmed that bears were in control.
- A reclaim of $650+ could shift momentum to bullish, while failure could send price towards $550.
Binance Coin [BNB] continues to face correction, with price being down about 2.21% in the last 24 hours.
However, the price action revealed a compelling narrative of dynamics over recent weeks, encapsulated by critical support and resistance levels.
After BNB saw an instant rejection at the $725 resistance level, it signaled a clear shift in market structure. This pivotal point initiated a bearish trajectory, confirmed by a “Break of Structure” and a “Change of Character” indicating that sellers had seized control from buyers.
Following this rejection, BNB underwent a liquidity grab at the $675 level before seeing another decline. This brought its price down to test the support zone between $600 and $615.
This level is currently where BNB stands, presenting a critical juncture that could determine its short-term trajectory.
Source: TradingView
If BNB can reclaim the $650 price level and sustain above it, the altcoin could potentially reverse the bearish sentiment and pivot the momentum to bullish.
This hinges on significant volume of buying pressure to signal renewed confidence among investors.
Conversely, Binance Coin’s failure to hold above the support around $600-$615 could precipitate a further drop towards the $550 level, extending the bearish trend and potentially testing lower support levels.
Sentiment and BNB chain tokens’ performance
Analysis of the sentiment gauges for BNB showed contrasting views between the public and informed investors.
The “Crowd Sentiment” indicator was slightly bearish at -0.18 at press time, suggesting cautious or negative expectations among average investors.
In contrast, the “Smart Money Sentiment” was 0.65, indicating a moderately bullish outlook from more experienced or institutional investors.
This disparity suggested a potential uptrend if smart money’s positive sentiment drives the market, outweighing the crowd’s bearishness.
Source: Market Prophit
On the other hand, the BNB ecosystem witnessed a dynamic phase despite a recent price dip, as tokens like TST, COOKIE, BNX, Broccoli, and CGPT rebound with huge performance.
Amidst this downturn, Foresight Ventures injected optimism by committing $25 million to fuel Web3 initiatives through the Binance Incubation Alliance.
This investment aimed to harness and enhance the capabilities of the BNB Chain, bolstering its position in the digital asset market.
These developments signified a concerted effort to not only stabilize but also expand the utility and reach of the BNB ecosystem, reflecting confidence in its long-term growth potential amidst market fluctuations.
