Key insights
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BNB price needs to carry the $1,000 support to avoid a deeper correction to $845.
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Spot takers’ CVD stays negative, indicating slowing demand.
BNB (BNB) showed weakness on Wednesday, losing 10% over the past seven days to trade at $1,072. Several technical and on-chain indicators suggest that the Binance-linked coin needs to carry the $1,000 support to avoid a deeper correction towards $845.
BNB bulls have to defend the $1,000 support
The recent sell-off has caused BNB price to say no towards the $1,050 support level. Bulls struggled to push BNB above this level to avoid further losses.
“$BNB is holding strong after a recent decline across the $1,060 support zone,” analyst BlockchainBaller said in a Tuesday post on X.
Buyers are showing interest here and a move to the $1,140 area appears possible if the worth breaks out above the $1,107-$1,120 range, the analyst wrote.
Note that that is where the 200 and 50 period easy moving averages (SMAs) are currently situated. Furthermore, the subsequent barrier is at $1,180, which can be the 100 SMA.
“A clean breakout could trigger the subsequent surge.”BNB/USD four-hour chart. Source: Cointelegraph/TradingView
On the opposite hand, the primary area of interest is between Tuesday's low at $1,050 and the local low at $1,020 (reached on October 15).
The following line of defense is the psychological level of $1,000, an area that has acted as support since September thirtieth.
An in depth below $1,000 could trigger an additional price decline towards the second area of interest, which is between the 100-day exponential moving average at $955 and the September 25 low at around $930.
A deeper correction could see the altcoin retest the Oct. 11 wick at around $874.
Data from Cointelegraph Markets Pro and TradingView shows BNB falling below a descending triangle on the six-hour chart, as shown below.
Failure to shut above the triangle's support line at $1,069 could see the worth proceed its downtrend, with a measured goal of $845.
Such a move would increase total losses to 21% from current levels.
The relative strength index is moving below the 50 level and has fallen from 86 to 41 within the last two weeks, indicating increasing bearish momentum.
As Cointelegraph reported, a break below the $1,020 support could indicate that the BNB/USD pair has peaked within the short term.
BNB spot taker CVD signals high seller volumes
Analysis of the 90-day cumulative spot taker volume delta (CVD) shows that sell orders (taker-sell) have grow to be dominant again. CVD measures the difference between buying and selling volume over a three-month period.
Selling pressure has dominated the order book since Friday after the BNB/USD pair hit an all-time high of $1,375.
A negative CVD (red bars within the chart below) indicates profit-taking amongst traders and signals weakening demand as sellers take control.
If the CVD stays within the red, it signifies that sellers are usually not giving in, which could set the stage for an additional wave of bearishness seen in historical corrections.
The chart above suggests that more sell orders than buy orders are being placed out there, with the bulk making profits at current prices. In other words, there’s currently more supply than demand, which generally suggests that price could extend its correction.
As Cointelegraph reported, continued outflows from crypto exchange Binance pose risks to BNB and limit its upside potential.
This article doesn’t contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their very own research when making their decision.
