BNB, the native token of the Binance exchange, has recently experienced a significant downturn, plummeting more than 10% and falling below the crucial $800 support level. This alarming trend has unsettled traders, coinciding with a broader selloff in the cryptocurrency market. As of now, the global crypto market capitalization has decreased by nearly 11%, bringing it down to $2.78 trillion.
At the time of writing, Bitcoin is down over 7% to $85,000, having recovered slightly from a low of $82,000, which marks its lowest point since April. Similarly, Ethereum has dipped to $2,626 during this turbulent period.
The decline in BNB”s price has been attributed to the overall bearish sentiment in the market, with over $2 billion in liquidations reported in the last 24 hours, according to data from CoinGlass. This wave of liquidations reflects a growing apprehension among investors, as indicated by the crypto market”s fear and greed index, which currently stands at 11, signaling “extreme fear.”
Currently, BNB is attempting a recovery, trading at approximately $841 after hitting a 24-hour low of $793. However, market analysts are cautioning that the token could potentially retrace to $600 if it fails to reclaim key resistance levels. Analyst Ali Martinez pointed out that the $853 mark is now a significant resistance point, while the next major support level is identified at $660. Should this support fail to hold, a further drop to $564 could be on the horizon.
Despite the ongoing market turmoil, some experts believe the current downturn presents a buying opportunity for traders at a discounted price, which could lead to a strong recovery for BNB and other cryptocurrencies. However, the prevailing macroeconomic factors and market fundamentals are casting a shadow over trader sentiment, urging investors to conduct thorough research before making any moves in this volatile environment.
