Binance Coin (BNB) has seen some steep losses over the previous few days. However, though the coin is following the development in the broader market, these losses have exposed BNB to vital draw back danger that would lead to further critical declines. Here are some details:
For most of 2022, BNB has discovered large demand between $253 and $308
A 20% crash in the final 24 hours signifies that bulls have now misplaced that demand zone
If restoration doesn’t come quickly, BNB will fall sharply once more in the coming days
Data Source: Tradingview
Where will BNB go subsequent?
It was solely just lately that BNB was hovering nicely above $300. For most bulls, it was a time of consolidation, and there have been hopes that the coin might stroll in direction of $400 in no time. But the crypto crash over the previous few days has put a lot strain on BNB. The coin has misplaced 20% over the final 24 hours alone.
But extra importantly, BNB has additionally misplaced a vital demand zone. You see, even with excessive volatility in the market, the coin was getting vital consumers between $308 and $253. The latest crash has pushed the value motion exterior this purchase zone.
Unless there’s a restoration in the subsequent 24 hours, BNB will come below promoting strain as bears take full management. The coin will doubtless backside at $222 or thereabout earlier than every other bull run.
Are we seeing a critical BNB correction?
Losing almost 40% in lower than three days can be seen as a critical correction for any coin. But for BNB, the sharp fall has merely exposed it to further draw back danger. For this purpose, we don’t assume the steep decline is over.
In truth, based mostly on sentiment in the market, it might be believable to count on further BNB losses earlier than the finish of the week. We are due to this fact seeing a really critical correction with the coin.