BNB (BNB) continues to experience downward pressure, trading around $696.40 on Thursday after a 4.58% decline over the previous two days. Market indicators suggest the potential for further declines, as bearish signals emerge from key technical tools and funding rate data.
Signs of Weakness in BNB Price Action
BNB’s price recently tested its 50-day Exponential Moving Average (EMA) support level at $683.98, following a 4.58% drop since Tuesday. As of Thursday, BNB remains slightly above this support at approximately $696.40.
Should BNB fail to hold above this level and close below $696.40, the next key support level to watch is around $612.50, which could mark the next stage of the decline.
Technical Indicators Point to Bearish Momentum
The Relative Strength Index (RSI) for BNB, as of Thursday, is at 49, just below its neutral 50 level. This suggests a weakening bullish momentum and hints at further downward movement. Additionally, the Moving Average Convergence Divergence (MACD) indicator posted a bearish crossover on Wednesday, reinforcing the likelihood of a downtrend.
Funding Rate Data Reflects Negative Sentiment
Coinglass’s OI-weighted funding rate further supports a bearish outlook for BNB. The funding rate, which measures the cost of holding long or short positions based on open interest, stands at -0.0137%. This negative reading indicates that traders betting against BNB’s price are in the majority, pointing to broader market pessimism and adding potential downward pressure on the cryptocurrency.
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