Despite bouncing back from its August lows, Binance Coin has struggled to gain upside traction, pointing to growing downside risks for BNB in the current risk-off climate.
While BNB has risen 5.5% from last month’s bottom at $203, bulls are losing steam, opening the door for bears to retest support around $184 – 14% below current levels.
BNB has outperformed Bitcoin recently, highlighting relative strength. But network activity is declining, with Binance Smart Chain’s total value locked sinking to new lows.
With BNB failing to reclaim resistance at $220, the technical picture remains bearish. Ongoing legal issues and Bitcoin weakness could catalyze a retest of range lows.
The upside for BNB appears limited unless it can break above the $250 resistance. Until then, caution is warranted given the confluence of bearish technical and fundamental factors weighing on Binance Coin.
The stalled recovery underscores risks in the current climate. However, BNB’s core utility and exchange leadership may limit the extreme downside. Traders should watch for a break of $220 or $184 to signal the next major move.
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