The Binance Coin (BNB) Price Struggles to Sustain Uptrend
The Binance Coin (BNB) price is facing difficulties in maintaining its upward trend after experiencing a significant surge from support above $200 to highs at $232. Despite benefiting from the overall bullish sentiment in the crypto market, fueled by optimism surrounding the potential approval of a Bitcoin spot ETF, investors are considering securing their profits. Currently, BNB is trading at $225, down 2.2% on Wednesday.
Trading Volume and Market Cap Indicate Potential Pullback
Over the past few weeks, BNB has demonstrated strong bullish momentum, leading to expectations of a major upward movement to initiate a bull run. However, a 44% decrease in trading volume to $445 million suggests the possibility of a larger pullback. Additionally, the market cap has declined by 2.3% to $34 billion, indicating further downside potential.
Support at $220 Crucial for BNB
In order for BNB to avoid further decline, it is crucial for the support level at $220 to hold. If this support level fails, there is a risk of BNB falling to the local support at $200. This level is expected to provide more liquidity and potentially build momentum for the next breakout.
Binance Resumes Crypto Withdrawals After Technical Issue
Binance, the largest cryptocurrency exchange, experienced a technical issue with crypto withdrawals but has since resolved it. The exchange temporarily paused withdrawals in order to fix the problem. During this time, fiat withdrawals remained unaffected and available. The issue was quickly resolved and all crypto withdrawals on Binance are now functioning normally.
BNB Price Prediction: Searching for Support
The correction from the highs at $232 is putting pressure on key support levels, including the 100-day Exponential Moving Average (EMA). A daily close above the 100-day EMA is necessary to confirm the bullish trend and improve investor confidence. Traders may consider increasing their exposure to BNB if this support area holds.
However, with the Relative Strength Index (RSI) retreating into the neutral zone from the overbought region, the path of least resistance is likely to shift downwards. Traders looking to bet on further declines in BNB price would see confirmation below the 100-day EMA at $225. The 21-day EMA would act as a support level at $200.
Despite these potential challenges, it’s important to note that the crypto market structure has improved significantly in October. Therefore, the drop to $225 could be a temporary pause before a larger breakout towards short-term recovery targets of $240 and $250.
Hot Take: John’s Price Prediction Expertise
John, a seasoned crypto expert and Price Prediction Editor for Market Content at CoinGape Media, provides valuable insights into price trends and market forecasts. With his extensive experience in analyzing on-chain data, NFTs, DeFi, CeFi, and the metaverse landscape, John keeps his audience informed about the ever-changing crypto market. However, readers should conduct their own market research before making any investment decisions.
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