BNB Price News: BNB Bounces Off $800 During the Sell-Off – Can It Hold?

BNB (BNB) has shed 41% of its value since it hit its latest all-time high at $1,360 as the crypto market faced significant selling pressure during the past month.

The native asset of the BNB Chain has accumulated a 25% loss in the past 30 days alone. Last week, the market bounced back a bit and pushed the token temporarily above $900.

However, as the Asian session opened on Sunday, news from Japan about an upcoming rate cut rattled the markets and caused a 10% 24-hour loss at some point during the session.

Most other tokens are also dropping sharply, causing a spike in long liquidations in the past 24 hours. Data from CoinGlass indicates that $870 million worth of long positions have been wiped out of the market during this period.

Daily Transactions BNB Chain – Source: BSC Scan

Daily transactions on the BNB Chain have now declined from a recent peak of 31.3 million in October 8 to 13.5 million at the time of writing, meaning a 57% drop in less than two months.

Meanwhile, trading volumes for BNB have jumped by 90% to $2.65 billion, and currently account for 2.4% of the token’s circulating market cap.

BNB Could Set Eyes on $730 If It Loses This Key Support

Looking at the daily chart, the token broke below its 200-day exponential moving average (EMA) in late November and recently retested and rejected a move above that line.

BNB/USD Daily Chart (Binance) – Source: TradingView

This is a relevant technical sell signal that could anticipate further downside for BNB in the next few days.

For now, the $800 level seems to be holding during today’s session, but the selling pressure seems strong enough, and the BoJ comments could be exactly what the market needs to keep selling.

However, a break below this level could trigger a much deeper correction to $730, meaning an 11% downside risk in the near term.

The Relative Strength Index (RSI) just sent a sell signal as well upon dropping below the 14-day moving average. This further confirms a bearish outlook, although the oscillator is quite near oversold territory again.

Paired with a recent break below the 200-day EMA, the situation looks dire for BNB from a technical standpoint.

Short-Sellers Could Make a Killing If a Bearish Breakout is Confirmed

Meanwhile, the hourly chart shows a strong rebound off the $800 level. The last time the price hit this mark, BNB jumped by 12% in just 5 days. This confirms that the market’s interest in the token at this level is quite strong.

BNB/USD Hourly Chart (Binance) – Source: TradingView

This increases the odds of a much stronger drop if the price collapses below this key support, as it would catch bulls off guard and could squeeze them out of their long positions.

An escalation in the amount of BNB liquidations once the token hits this level would confirm its relevance and would give traders a more definite sell signal.

A short position could fully take advantage of the key levels discussed earlier from the daily chart by setting up a stop loss right above $800 if a bearish breakout occurs. This maximizes the risk-reward ratio of the trade to around 5:1 for early sellers.