The post Binance Coin Price Drops in a week, BNB Indicator Shows Strong Downtrend appeared on BitcoinEthereumNews.com.

BNB price drops 9% in a week, with ADX at 40.88 indicating a strong downtrend. Ichimoku Cloud analysis confirms bearish sentiment and potential further decline. Death cross formation suggests possible 12% correction to $471 if $527 support breaks. Binance Coin (BNB) finds itself navigating turbulent waters as its price experiences an 8% decline over the past seven days. This downturn, occurring despite the recent hype surrounding Binance founder Changpeng Zhao’s release, has sparked concerns among investors and traders alike. Technical indicators paint a grim picture, suggesting that the bearish momentum may be far from over. The Average Directional Index (ADX), a key metric for assessing trend strength, currently stands at a robust 40.88. This reading, well above the threshold of 25 that typically indicates a strong trend, signals that the current downward movement is not merely a temporary fluctuation but a sustained bearish phase. The rapid escalation of the ADX from 22 on September 30 to its current level underscores the accelerating selling pressure and increasingly negative market sentiment. Ichimoku Cloud analysis further corroborates the bearish outlook for BNB. The price has decisively broken below the Kumo (cloud), a development that traditionally signals seller dominance. The widening cloud with a downward slope suggests strengthening future resistance, potentially impeding any attempts at recovery. BNB forms a death cross Source: TradingView The bearish crossover of the Tenkan-sen below the Kijun-sen, coupled with the Chikou Span’s position below the price from 26 periods ago, reinforces the prevailing bearish sentiment. Adding to the bearish narrative, BNB has recently formed a “death cross” – a technical pattern where short-term moving averages cross below long-term ones. This formation, often associated with significant market downturns, suggests a transition from bullish to bearish momentum as the shorter-term price trend weakens relative to the long-term trend. Currently, BNB is testing…

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Filed under: News - @ October 5, 2024 4:20 am