Key takeaways
BNB price must hold $1,000 support to avoid a deeper correction to $845.
Spot taker CVD remains negative, suggesting waning demand.
BNB (BNB) displayed weakness on Wednesday, down 10% over the last seven days, trading at $1,072. Multiple technical and onchain indicators suggest that the Binance-linked coin must hold the $1,000 support to avoid a deeper correction toward $845.
BNB bulls need to defend $1,000 support
The latest sell-off has seen the BNB price drop toward the $1,050 support level. Bulls were fighting to push BNB above this level to avoid further losses.
“$BNB is holding strong around the $1,060 support zone after a recent drop,” said analyst BlockchainBaller in a Tuesday post on X.
Buyers are showing interest here, and a move toward the $1,140 area looks possible if price breaks above the $1,107–$1,120 range, the analyst wrote.
Related: CZ’s YZi Labs launches $1B BNB fund as token hits new highs
Note that this is where the 200-period and 50-period simple moving averages (SMAs) currently sit. Higher than that, the next barrier sits at $1,180, which also corresponds to the 100 SMA.
“A clean breakout could trigger the next leg up.”
On the downside, the first area of interest lies between Tuesday’s low at $1,050 and the local low at $1,020 (reached on Oct. 15).
The following line of defense is the $1,000 psychological level, an area that has acted as support since Sept. 30.
A close below $1,000 could trigger another drawdown in price toward the second area of interest lying between the 100-day exponential moving average at $955 and the Sept. 25 low around $930.
A deeper correction could see the altcoin retest the Oct. 11 wick around $874.
Data from Cointelegraph Markets Pro and TradingView shows BNB breaking below a descending triangle on the six-hour chart, as shown below.
Failure to close above the triangle’s support line at $1,069 could see the price continue the downward trajectory, with a measured target of $845.
Such a move would bring the total losses to 21% from the current level.
The relative strength index is moving below the 50 mark and has dropped from 86 to 41 over the last two weeks, suggesting increasing downward momentum.
As Cointelegraph reported, a drop below the $1,020 support could suggest that the BNB/USD pair may have topped out in the short term.
BNB spot taker CVD signals high seller volumes
Analyzing the 90-day spot taker cumulative volume delta (CVD) reveals that sell orders (taker sell) have become dominant again. CVD measures the difference between buy and sell volume over a three-month period.
Since Friday, sell-side pressure has dominated the order book, after the BNB/USD pair hit an all-time high of $1,375.
Negative CVD (red bars in the chart below) indicates profit-taking among traders, signaling waning demand as sellers take control.
If the CVD remains red, it means sellers are not backing down, which could set the stage for another wave of downward movement, as seen in historical corrections.
The chart above suggests more sell orders are being placed in the market than buy orders, with a majority being in profit at current prices. In other words, there’s currently more supply than demand, which generally signals that the price may extend its correction.
As Cointelegraph reported, persistent outflows from the Binance crypto exchange pose risks for BNB, limiting its upside potential.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.