BNB, like many other altcoins, has recently faced a significant drop in its price, especially after struggling to surpass the $700 mark earlier this month. Despite this, traders remain optimistic and are anticipating another breakout attempt. While the selling pressure on its price chart is increasing, several on-chain metrics continue to show bullish signs, indicating that BNB may be gearing up for a strong recovery rally in the near future.
BNB has shown relatively strong performance during the recent market recovery. Compared to Bitcoin and Ethereum, BNB experienced a maximum drawdown of 73.3% during the 2021 to 2022 bear market. It also managed to recover much quicker, stabilizing in just 237 days, while Bitcoin took 517 days to bounce back. In the bull market of 2024, BNB demonstrated resilience in the face of various market challenges that affected other cryptocurrencies. Despite events like Grayscale’s GBTC sell-off, the Federal Reserve’s hawkish adjustments, and the anticipated Mt. Gox repayments, BNB maintained stability.
In August 2024, a liquidity crisis caused high volatility in the crypto market, leading to an 18.5% drop in BNB’s price. This decline was slightly higher than Bitcoin’s 15.5% decrease but better than Ethereum’s ongoing losses. Coinglass data shows that BNB has seen nearly $6 million in liquidations, with most coming from long positions. Despite a 4.6% decrease in open interest to $742.8 million, the long/short ratio has been rising, indicating growing optimism among traders for a potential recovery rally in BNB’s price.
Looking ahead, Binance Coin has faced selling pressure that pushed its price below the crucial $600 level. While the price briefly touched a low of around $586, buyers managed to push it back up. Currently trading at $611, BNB has seen a 3.5% decline in the past 24 hours. The BNB/USDT pair is expected to retest the $565 level, with strong resistance likely from buyers. The Relative Strength Index (RSI) nearing the oversold threshold at 34 suggests the possibility of increased selling pressure. If the price fails to hold above $565, a further decline towards $500 could be on the cards.
On the flip side, maintaining above $565 or a bounce back could lead to an upward movement towards $647. Breaking past $647 could propel the price towards $685. Traders are closely monitoring these levels for potential entry points and anticipating the next move for BNB as it navigates the current market conditions.