Journalist
Posted:
- BNB retraced towards $700 amid increased profit-taking.
- Will weak sentiment and muted whale interest push it lower?
Binance [BNB] has cooled off after soaring nearly above $800 in December.
At press time, the altcoin had dropped towards $700, indicating increased profit-taking after hitting an all-time high of $793.
But can the altcoin defend $700 ahead of this week’s Fed rate decision?
BNB price prediction: Will $700 hold?
Source: BNB/USDT, TradingView
Since November, BNB’s price action chalked an ascending channel. The past two price consolidations near the 4-hour 50EMA (exponential moving average, yellow), slid lower to the channel’s range-low.
In the past few days, BNB’s price has fluctuated above the moving average and mid-range.
A drop below $700 could be likely if the moving average cracked as support. Additionally, demand has slowed, as shown by lukewarm reading on the RSI.
At press time, the price momentum also weakened as illustrated by the retreating ADX (Average Directional Index) which suggested that BNB could slide to $700 or below.
Whales trim BNB exposure
Source: Hyblock
Whales added small positions during the ATH pump in early December, per the little green bars of the Whales vs. Retail Delta.
But they trimmed their positions in the past few days, which coincided with the retracement towards $700.
Apart from whales, the entire futures market showed limited demand as Open Interest (OI) dropped by nearly 50%, shrinking from $800M to $433M. This implied a short-term bearish sentiment.
But can weak sentiment and demand push BNB below $700?
According to Coinglass’s weekly liquidation map, upside liquidity levels (shorts) were located at $734 and $750.
Source: Coinglass
Read Binance [BNB] Price Prediction 2024-2025
On the contrary, leveraged longs were concentrated at $690. A liquidity hunt for leveraged longs by market makers could effectively push BNB below $700 before eyeing the upside liquidity at $734.
In conclusion, the lukewarm BNB demand from whales and weak sentiment could accelerate its drop below $700. But the liquidity at $734 and $750 could become attractive if market sentiment improved.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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