- BNB was rejected at the descending trendline resistance, signaling further downside potential.
- Indicators point to continued downward pressure.
Binance Coin (BNB) recently suffered a severe rejection from a significant descending trendline.BNB bulls failed to break above it, as indicated by the TradingView chart.
The price came under selling pressure around the $525 level, which led to a pullback towards the current price. The market has been in control of this trendline since mid-July.
Source: TradingView
The Stochastic Relative Strength Index also indicated an overbought zone, suggesting potential for further downside in BNB prices.
BNB indicators paint a mixed picture
According to Coinglass netflow data, BNB spot inflows and outflows have been inconsistent, with high outflows indicated recently.
This could be seen as a reaction to the trendline bounce, as investors exit their positions.
The corresponding net outflow suggests that more coins are being withdrawn from exchanges than are being deposited, which may denote a short-term bearish trend.
Source: Coinglass
Despite the increase in capital outflows, funding rates did not show any marked bias. They stood at close to zero. This means that neither BNB bulls nor bears can claim any advantage over each other.
This implied a neutral funding rate, as investors appeared to be in a wait-and-see situation until a strong move occurred on either side of the market before deciding on the direction of trades.
Source: Coinglass
In addition to the above, AMBCrypto’s analysis of BNB liquidation data indicated significant liquidation pools below the trading price at press time.
Source: Coinglass
This liquidation pool can act as a magnet to drive its price further down.
Realistic or not, here is the market capitalization of BNB in terms of BTC
Are further declines imminent?
With the combination of strong trendline resistance, mixed net flow, and neutral funding rates, BNB is likely to see a more bearish trend going forward.
However, if the bulls put more buying pressure on the market and take a large long position, the price may stabilize for a bull run.
