BNB holds steady under short-term pressure, with technical aspects still showing resilience

Binance Coin (BNB) Faces Market Rotation Impact, but Technical Structure Remains Intact

BNB has endured sustained selling pressure over the past two weeks. The token experienced a pullback after hitting the key resistance level at $928, which coincides with the 61.8% Fibonacci retracement line. This level is often regarded by traders as an important potential reversal point, but BNB ultimately failed to hold, dropping to a low of $818 before rebounding to $849. Although a rebound occurred, it was not strong enough to reverse market sentiment. As of the latest quote, BNB is trading at $897.70, down 3.12% in 24 hours and 2.36% over the past week. Both daily and weekly charts show a decline of about 2%.

This correction aligns with a broader market retracement pattern. The overall crypto market has fallen by 1.57%, while Bitcoin dominance has risen to 58.94%, indicating capital is flowing into BTC. This rotation effect suppresses BNB because the asset serves a dual role as an ecosystem token and exchange platform coin, making it particularly sensitive to risk-off sentiment during Bitcoin’s strength.

Diverging Signals in Trading Volume

Volume data further reflect market caution. Spot trading volume for BNB has decreased by 17%, while derivatives market volume has globally increased by 43%, suggesting traders prefer hedging to manage risk rather than actively increasing exposure. When the Fear & Greed index is at a low of 29, market participants show little enthusiasm for buying on dips.

Despite the short-term bearish sentiment, the market is not entirely pessimistic. Continuous outflows from spot exchanges—since December 10, BNB has experienced consecutive withdrawals, including today’s $3.67 million outflow—are noteworthy. Such data often indicate accumulation, as decreasing exchange balances typically reflect funds moving toward long-term holdings rather than panic selling.

Weekly Chart Shows Reemergence of Familiar Support Zone

On a longer timeframe, BNB’s technical framework remains robust. The weekly chart shows the token trading above a broad support zone between $793 and $691. This is not an unfamiliar level—the lower boundary corresponds to early highs from May 2021. Subsequently, BNB broke through this critical level at the end of 2024, using around $793 as a springboard to initiate the upward trend in 2025, ultimately reaching a historical high of $1370.

Months later, the market revisited this area, even attempting a breakout in mid-November. This support zone has repeatedly acted as a “charging station,” attracting patient buyers even amid a generally heavy market tone. Technical traders are closely monitoring the performance in this region.

From a technical perspective, BNB remains above the upward trendline established since 2023, which has withstood multiple pullbacks. The token also stays above most major moving averages, with the exception of the 20-period moving average currently at $968, above the price, and the 50-period moving average at $778, coinciding with the Fibonacci 50% midpoint. The 100-period moving average is near $674, and the 200-period at $480. These levels provide multiple layers of defense against further declines.

Momentum indicators appear relatively stable. The RSI hovers around 46, neither overbought nor indicating a clear direction, which is common during a quiet consolidation phase.

On-Chain Activity Suggests Accumulation

On-chain metrics further support the view that the market has not fully turned weak. Funding rates have remained positive since mid-December, currently around +0.0040, indicating longs are willing to pay a premium to shorts to maintain positions. This reflects confidence in future price appreciation rather than a prolonged decline.

Spot exchange activity tells a similar story. Since December 10, BNB has shown continuous outflows from spot exchanges, including today’s $3.67 million withdrawal. These indicators reinforce a bullish outlook, as declining exchange balances often signal funds moving toward self-custody for long-term storage rather than hurried liquidation.

Open interest (OI) remains largely stagnant. Since mid-October, OI has fluctuated around $12.8 billion, with only about a 2% decrease in the past 24 hours. The lack of new positions suggests traders are waiting rather than speculating, with fewer new contracts typically leading to narrower trading ranges and lower volatility.

Market Pauses, Awaiting Confirmation of Direction

In the short term, cautiousness still dominates. Low trading volume and a renewed focus on Bitcoin suggest a wait-and-see approach. However, BNB’s long-term framework remains intact—supported by deep support zones, trendlines on higher timeframes, and stable on-chain accumulation signals.

The key question is: will the token first revisit its support area before launching a new rally, or will the market turn early? The next significant price move will break the current lull and truly reveal the market’s underlying stance.

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