Binance Coin exposed to further risks as the coin falls sharply in broader crypto sell-off
Binance Coin (BNB) has seen some steep losses over the last few days. However, although the coin is following the trend in the broader market, these losses have exposed BNB to significant downside risk that could lead to further serious declines. Here are some facts:
For most of 2022, BNB has found massive demand between $253 and $308
A 20% crash in the last 24 hours means that bulls have now lost that demand zone
If recovery doesn’t come soon, BNB will fall sharply again in the coming days
Data Source: Tradingview
Where will BNB go next?
It was only recently that BNB was hovering well above $300. For most bulls, it was a time of consolidation, and there were hopes that the coin could stroll towards $400 in no time. But the crypto crash over the last few days has put so much pressure on BNB. The coin has lost 20% over the last 24 hours alone.
But more importantly, BNB has also lost a crucial demand zone. You see, even with high volatility in the market, the coin was getting significant buyers between $308 and $253. The recent crash has pushed the price action outside this buy zone.
Unless there is a recovery in the next 24 hours, BNB will come under selling pressure as bears take complete control. The coin will likely bottom at $222 or thereabout before any other bull run.
Are we seeing a serious BNB correction?
Losing nearly 40% in less than three days would be seen as a serious correction for any coin. But for BNB, the sharp fall has simply exposed it to further downside risk. For this reason, we don’t think the steep decline is over.
In fact, based on sentiment in the market, it would be plausible to expect further BNB losses before the end of the week. We are therefore seeing a very serious correction with the coin.