BNB Faces Pressure: The Price Tumbles From October High
As the price of BNB continued to decline since mid-October, it formed a falling wedge pattern. At the time of writing, the price of BNB was trading at $966.94, according to CoinMarketCap data. This was 29.45% below its October high of $1,370 and marked a 0.37% decrease over the previous day.
As user activity on the BNB Chain continued to fall, BNB’s price dropped. The number of transactions on the blockchain has decreased from 31 million on October 8 to less than 16 million at the time of publication, according to data from BscScan. Reduced user and developer involvement is usually indicated by declining network transactions. Therefore, the token’s demand declines, and the network’s overall usefulness is diminished.
BNB Faces Pressure as Derivatives Market Halves
The demand in BNB’s derivatives market has also drastically decreased. Over the same time period, it fell from an all-time high of $2.97 billion to $1.35 billion. Additionally, within the previous 24 hours, the long-to-short ratio fell below 1. This indicates that a greater percentage of traders were setting themselves up for future declines. This change is indicative of the increasing pessimism regarding BNB’s prospects. In the near future, this might put more pressure on its price.
Falling Wedge Signals Possible BNB Recovery Ahead
Since its decline from the October high, the price of BNB has continued to decline for the majority of the days, according to the daily chart. Additionally, it has created a falling wedge formation, which in technical analysis is seen as a bearish reversal pattern.
BNB was positioned near the pattern’s upper trendline at the time of publication, anticipating a possible bullish breakout from the pattern at the $1,000 mark. Additionally, this represents the token’s next major psychological obstacle. By adding the length of the falling wedge pattern to the price at which the breakout might occur, a clear breakout from it might boost it toward $1,100 or perhaps $1,300. Therefore, if the goal is reached, the price of BNB would regain the majority of its losses.
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