BNB Price Rally Stalls as Traders Turn Bearish

BNB coin has bucked the wider crypto market trend, rallying nearly 20% in the past week despite a general downturn. 

However, on-chain and technical indicators now suggest that the rally may be losing steam, as traders turn cautious and begin booking profits from recent gains.

Sponsored

Sponsored

BNB Faces Profit-Taking Wave

Readings from the BNB/USD daily chart confirm the shift in market sentiment around BNB. While its price has risen steadily over recent trading sessions, its Chaikin Money Flow (CMF) has plunged downward, forming a bearish divergence. At press time, this key momentum indicator stands at -0.02.

For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

The CMF indicator tracks money flow into and out of an asset. When it falls during a price rally, it forms a bearish divergence. 

This indicates that despite BNB’s upward price movement, buying pressure is weakening, and if this trend continues, the coin could shed its recent gains.

Furthermore, BNB’s long/short ratio has steadied below one since October 6, highlighting the growing negative bias among futures traders. As of this writing, this is at 0.9354.

Sponsored

Sponsored

The long/short ratio measures the proportion of traders holding long positions (bets that an asset’s price will rise) against those holding short positions. 

When it returns a value above one, more traders expect upward momentum, reflecting a bullish trend in the derivatives market. 

Conversely, a ratio below one, as with BNB, indicates that most participants are betting on further downside. A sustained increase in short positioning reflects expectations of a market correction, further adding to the coin’s selling pressure.

BNB Hangs by a Thread at $1,263 

At press time, the altcoin trades near the support at $1,263. If bearish sentiment prevails, the support floor may crumble and BNB could retrace toward $1,100, erasing a portion of last week’s gains. 

However, a rebound in buying activity could still keep the token above that key support level. In this scenario, BNB’s price could revisit its all-time high of $1,349.