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Binance Coin: Can BNB defy this pattern and avoid further decline?
The current market sentiment surrounding Binance Coin (BNB) is increasingly bearish, with technical indicators and market metrics pointing towards a deeper correction. As the asset’s price action approaches a crucial support level, traders are left wondering whether it can defy expectations and avoid further decline.
At press time, BNB was trading at $676.54, marking a 2.38% decline in the last 24 hours. This downward pressure has led to the formation of a rising wedge pattern on the weekly chart, often signaling bearish outcomes.
Adding fuel to this fire is the negative funding rate of -0.0389%, indicating an increase in short positions and further reinforcing the notion that traders are anticipating a decline.
Moreover, the token’s social dominance has surged to 0.845%, the highest level recorded in recent months. While this increased attention can sometimes drive renewed buying, it remains unclear whether this will be enough to stem the tide of bearish sentiment.
As the market continues to watch BNB’s next move, derivatives data provides mixed signals. Options volume skyrocketed by a whopping 1536.55%, and open interest rose by 1.65%. However, negative funding rates and declining asset price cast doubt on any potential upside momentum.
In conclusion, it appears that Binance Coin is currently at a crossroads. While it may be able to defy the rising wedge pattern and avoid further decline, the bearish indicators are too numerous to ignore. As always, this is a crucial moment for traders to keep their eyes fixed on the asset’s price action and adapt accordingly.
Source: ambcrypto.com
