Should You Buy BNB in the Dip?
BNB, like many Altcoins, has experienced a significant decline, especially after struggling to play over $700 earlier this month. However, traders are still bullish and another breakthrough attempt is expected. Despite growing sales pressure on its price list, indicators on several chains still show signs of bullishness. These metrics show that BNB can soon have a powerful recovery rally.
BNB performs relatively well during recovery
In the bear market from 2021 to 2022, BNB performed relatively well, with a maximum reduction of 73.3%, while Bitcoin’s deeper rate dropped by 77.4%, and Ethereum’s decline was 81.7%. BNB’s recovery speed is significantly faster and can stabilize in just 237 days, while Bitcoin took 517 days to recover.
During the 2024 bull market, BNB managed to face various market challenges that affected other coins such as Ethereum and Solana. This stability is seen in key events such as Grayscale’s GBTC sell-off in January, hawkish adjustments in March, and expected repayments from GOX Hill last July.
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In addition, in August 2024, a large number of bearish tests were conducted, with liquidity crisis, causing high volatility in the cryptocurrency market. Currently, BNB’s price has fallen by 18.5%, which is slightly higher than Bitcoin’s 15.5%. However, BNB’s performance is better than Ethereum, which has been facing its current losses.
According to Coinglass, BNB’s liquidation totaled nearly $6 million, with $5.8 million coming from long positions, indicating a surge in long-term liquidation. Additionally, BNB’s open interest fell 4.6% to $742.8 million, showing a decrease in trading interest for traders.
Nevertheless, the long/short ratio has been rising and is currently at 1.3992. This increase shows that the number of long positions has increased relative to the number of short positions, and now about 58% of positions are long. This trend suggests that most traders now expect BNB prices to resume rallies.
What is the next step in BNB price?
Binance Coin (BNB) has suffered huge sales pressure, with its price pushing up below $600. Prices were as low as around $586; however, buyers later rebounded. Meanwhile, the seller is testing the waters to achieve a potential continuation of the downward trend. Currently, the price of BNB is $611, reflecting a 3.5% drop in the past 24 hours.
BNB/USDT is ready to retest the $565 level, although it is likely to encounter strong resistance from buyers. As the relative strength index (RSI) approaches the oversell threshold of 34, the sales pressure on BNB is intensified. If the price does not exceed $565, it may drop further by $500.
Conversely, if BNB keeps its position above $565 or bounces back from its current price, it is possible to move upwards to $647. A successful promotion of over $647 could push the price to about $685.
