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BNB faces bearish pressure at a key support level
The token is down 68% from its ATH
Crypto market under bearish momentum, BTC trades under $20,000.
Binance’s (BNB/USD) has remained subdued amid an extended bearish momentum in the sector. The token is currently trading at $215.35, after a 3.4% decline in the past day and a 10.72% drop in the past week, as per CoinMarketCap. Comparatively, the flagship token, bitcoin, has tanked 10.96% in the past week, while Ethereum is down 15.41%. Are we about to see a trend reversal in the native Binance token, or can it trade lower?
The ongoing global expansion by Binance has done little to boost the adoption of the native BNB token, which was originally meant for discounting fees. BNB Chain’s auto-burn token mechanism, which saw Binance burn over 1.8 million BNB tokens in April, is yet to boost the value of the cryptocurrency.
The past price data from CoinMarketCap shows that the BNB token is on a downward trend. In the past month, the token has dropped 28.7% from a high of $303. The three-month price outlook shows a decline of 51% from $444. The token has equally plunged 68% from its all-time high of about $675.
BNB finds support at $215
Source: Tradingview
According to the daily chart outlook above, BNB token is looking bearish. The token is currently trading at the support level, having turned the $327 price level into resistance. The 20 and 50-day moving averages offer resistance to the upside, showing potential areas of consolidation in case of a trend reversal. Moreover, with the RSI at 36, BNB could be set for a short-term upward trend reversal.
Overall, the current price level can make an ideal buy entry but with the confirmation of a bullish price signal. We recommend that investors remain patient with price action signals before buying at the current level. A drop below $215 could open further weakness, and the token can go lower.
Summary
BNB token remains largely subdued amid a bearish sentiment in the cryptocurrency sector. However, investors can benefit from short-term price movements before the sentiment changes. Traders should wait until the token has cleared above the $215 level before going long.
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