Key takeaways
BNB price must maintain $1,000 support to prevent a deeper correction to $845.
Spot taker CVD remains negative, indicating declining demand.
BNB (BNB) showed weakness on Wednesday, falling 10% over the past week and trading at $1,072. Various technical and on-chain indicators suggest that the Binance-linked coin must sustain the $1,000 support to prevent a further drop toward $845.
BNB bulls need to defend $1,000 support
The latest sell-off has pushed the BNB price closer to the $1,050 support level, with bulls attempting to keep BNB above this threshold to mitigate additional losses.
“$BNB is holding strong around the $1,060 support zone after a recent drop,” reported analyst BlockchainBaller in a Tuesday update on X.
Buyers are showing interest at this level, with the potential for a move toward the $1,140 area if the price breaks above the $1,107–$1,120 range, the analyst indicated.
Related: CZ’s YZi Labs launches $1B BNB fund as token hits new highs
Currently, this is where the 200-period and 50-period simple moving averages (SMAs) are positioned. Above this, the next resistance level is at $1,180, aligning with the 100 SMA.
“A clean breakout could trigger the next leg up.”
The first area of concern below lies between Tuesday’s low at $1,050 and the local low at $1,020 (reached on Oct. 15).
The next line of defense is the psychological $1,000 level, which has provided support since Sept. 30.
A close below $1,000 could instigate another price drop towards the second area of interest located between the 100-day exponential moving average at $955 and the Sept. 25 low around $930.
A more significant correction could lead to the altcoin retesting the Oct. 11 wick around $874.
According to data from Cointelegraph Markets Pro and TradingView, BNB is trading below a descending triangle on the six-hour chart, as illustrated below.
Failure to close above the triangle’s support line at $1,069 could prompt the price to continue its downward trend, with a measured target of $845.
This potential move would result in total losses of 21% from the current price.
The relative strength index is currently below the 50 mark, having declined from 86 to 41 over the past two weeks, indicating increasing downward momentum.
As reported by Cointelegraph, a drop below the $1,020 support may suggest that the BNB/USD pair has peaked in the short term.
BNB spot taker CVD signals high seller volumes
Examining the 90-day spot taker cumulative volume delta (CVD) shows that sell orders (taker sell) are once again dominant. CVD evaluates the difference between buy and sell volume over a three-month span.
Since Friday, sell-side pressure has prevailed in the order book, following the all-time high of $1,375 for the BNB/USD pair.
A negative CVD (red bars in the chart below) indicates profit-taking among traders, implying diminishing demand as sellers exert control.
If the CVD remains negative, it indicates that sellers are maintaining pressure, potentially leading to another wave of downward movement, as seen in past corrections.
The chart above implies that more sell orders are currently being placed than buy orders, with a significant number being profitable at current prices. In other words, there’s more supply than demand, generally indicating a potential for further price correction.
As reported by Cointelegraph, ongoing outflows from the Binance crypto exchange pose risks for BNB, capping its upside potential.
This article does not include investment advice or recommendations. Every investment and trading action carries risks, and readers should perform their own research before making decisions.
