Altcoins
BNB Price Endures Two Months of Strain Following Rejection at Crucial $300 Level in June
BNB price has been under immense pressure for the past few weeks amid a decline in market volatility and risk appetite. The asset has crashed by nearly 5% in the past week, more than 25% in the past quarter, and 4.75% in the year to date. At press time, Binance Coin was trading lower at $234.7. BNB’s total market cap has slipped by 2% over the last day to $36 billion, ranking it the 4th cryptocurrency. On the other hand, the total volume of BNB traded over the same period has jumped by 37.45%.
Economic Concerns
BNB price has been in the red for several weeks now amid a decline in the crypto market sentiment and a lack of momentum to sustain an upward trajectory. The global crypto market cap has plunged by nearly 2% over the last day to $1.15 trillion, while the total crypto market volume increased by 23%. Bitcoin, the largest cryptocurrency by market capitalization, has been range bound for the past few weeks, weakening the market sentiment. Most altcoins, including Ethereum, XRP, Dogecoin, Cardano, Solana, Polygon, and Polkadot, have been in the red for the past week.
The Crypto Fear and Greed Index, which measures the key emotions driving the cryptocurrency market, has declined to a Fear level of 49. A Fear reading usually indicates that investors are having doubts about the market, ramping up the selling pressure against the backdrop of a decline in risk appetite.
Investors will be closely watching the release of the FOMC meeting minutes for July, hunting for clues about the Fed’s economic expectations and interest rate path. Since their last meeting in July, there have been mixed signals about whether the central bank would continue with its interest rate hike campaign or whether it would hit pause soon.
US Treasury yields hit an almost 10-month high on Wednesday buoyed by expectations that the Federal Reserve is not yet done with its rapid monetary tightening cycle. On Tuesday, Minneapolis Federal Reserve President Neel Kashkari noted that the central bank is still a long way from cutting rates. An environment of higher interest rates tends to be bearish for risk assets such as stocks and particularly cryptocurrencies.
BNB Price Technical Analysis
BNB price has failed to start a fresh incline over the past two months, after facing a strong rejection at the important resistance zone of $300. The digital asset remains below the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages.
Its Relative Strength Index (RSI), as well as the Moving Average Convergence Divergence (MACD) indicator, has dropped below the signal line, hinting at an increase in selling pressure. The Bollinger Bands have narrowed as seen on the daily chart, indicating a decline in market volatility.
Therefore, I expect the BNB price to fall further in the coming days amid global economic uncertainty. If this happens, the next support levels to watch will be $230 and $220. On the flip side, a move above the 50-day EMA at $245.5 might pave the way for further increases.
BNB Price Chart