- BNB was rejected at descending trendline resistance, signaling a potential further downside.
- Metrics signal continued bearish pressure.
Binance Coin [BNB] suffered a tough rejection from a significant descending trend line recently. However, BNB bulls failed to break above it, as indicated on the TradingView chart.
The price witnessed selling pressure around the $525 level, leading to a pullback to the current price. The market has been under control of this trend line since mid-July.
Source: TradingView
The stochastic Relative Strength Index also indicated an overbought zone. This suggested a potential for further dips in BNB’s prices.
BNB metrics paint a mixed picture
According to Coinglass’ net flow data, BNB’s spot inflows and outflows have been inconsistent, with high outflows indicated recently.
This could be seen as a reaction to the trend line’s bounce, since investors are dumping their positions.
The corresponding net outflow suggests that more coins are being withdrawn from exchanges than they are being deposited, which may denote short-term bearishness.
Source: Coinglass
Despite the increase in outflows, the Funding Rates indicated no strong bias. It stood at almost zero. This means neither BNB bulls nor bears can claim any advantage over one another.
It implied a neutral Funding Rate, as investors seemed to be in a ‘wait and see’ situation until some strong movement on either side of the market before making up their minds about trading direction.
Source: Coinglass
Adding to the aforementioned, AMBCrypto’s analysis of BNB’s liquidation data indicated significant liquidation pools below the press time trading price.
Source: Coinglass
This liquidation pool may act as a magnet to pull down its price further.
Realistic or not, here BNB’s market cap in BTC’s terms
Are further dips imminent?
With the combination of strong trendline resistance, mixed net flow, and neutral funding rates, BNB stands at risk for a more bearish run ahead.
However, if the bulls put more buying pressure on the market and take a significant long position, the price can stabilize for a bullish run.
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