- BNB continues its downtrend, testing critical support levels amid market uncertainty.
- Fibonacci retracement hints at a potential rebound, but momentum remains weak.
- Failure to hold current support could lead to deeper losses.
BNB has been in a rough patch lately, with prices steadily declining as sellers take control. After hitting a peak near $793, the token has been on a prolonged downtrend, with multiple failed attempts to recover. The latest drop has pushed BNB toward the $530-$540 range, an area that has previously acted as a key support level.
If buyers step in here, we could see a short-term bounce, but the overall market sentiment remains cautious. The TradingView chart suggests that lower highs are forming, signaling that bulls are struggling to regain dominance. If this trend continues, BNB could break below this support and enter a steeper correction.
BNB Struggles to Find Stability
Looking at Fibonacci retracement levels, BNB is now hovering around a critical support zone. The 61.8% retracement level from its recent rally sits in the $530-$550 range, making it a significant area to watch. If BNB holds above this level, there’s a chance for a relief rally back toward $600.
However, if this level fails, things could get more bearish. The next major support would be closer to the $500 mark, a psychological level that could determine whether a deeper decline is in store. Bulls need to step up soon to prevent further downside movement.
Bollinger Bands Suggest More Volatility Ahead
BNB’s Bollinger Bands are widening, which often signals increased volatility. The price is currently riding the lower band, meaning the asset is oversold in the short term. This could lead to a brief recovery, but if the mid-band at $580 isn’t reclaimed, the downward trend is likely to continue.
A break above $580 could open the doors for a move toward $620-$650. But if sellers keep pushing the price lower, we might see BNB testing sub-$500 levels. Traders should be cautious and look for confirmation before jumping into long positions.
BNB was created by Binance in 2017 as the native token of its exchange. Initially launched on Ethereum, it later migrated to Binance Smart Chain (BSC), where it powers transactions, smart contracts, and DeFi applications.
As BNB trades near crucial support, the next few days will be critical. A rebound from here could set the stage for a recovery, but failure to hold could lead to another leg down. Watch for price action around $530-$550 for clues on the next move.
