Binance Coin (BNB) may be on the verge of another price decline. Earlier this month, BNB experienced a nearly 20% jump after the market crashed on August 5.
However, over the last 24 hours, the cryptocurrency has fallen by 3%. This minor drop could signal the beginning of a further downtrend.
Binance Coin Hints at Long-Term Losses
At press time, the coin is trading at $552. However, the daily chart shows a bear flag forming, suggesting that the technical pattern could accelerate the recent decline. A bear flag occurs when the slope of a downtrend connects a parallel channel connecting the highs and lows of a short-term uptrend.
The chart below shows a nearly vertical flagpole, illustrating how the bulls initially gave way to the bears. This was followed by a brief period of profit taking as the bears were caught off guard by the bulls, who were aiming for slightly higher lows and higher highs.
Eventually, the bears regained control, dragging BNB down from a peak of $600 to $552. Despite this pullback, the bear flag formation suggests that the downtrend may not be over yet. If this pattern is confirmed, BNB could be headed for further declines towards $500.
Read more: BNB: A detailed guide on what it is and how it works
Moreover, the Money Flow Index (MFI) reinforces the bearish outlook. The MFI tracks price and volume data to measure buying and selling pressure. A rise in the MFI typically indicates incoming capital and potential price increases, while a decline suggests that money is leaving the market, signaling a bearish trend.
As you can see in the chart below, the BNB price is in line with the downward trend of this oscillator. This suggests that a bullish reversal is unlikely in the near future and the BNB price may continue to fall.
BNB Price Prediction: Will the Coin Fall Below $500 Support?
Applying the same analysis to the daily chart, BeInCrypto looked at the Fibonacci retracement indicator. Named after its short form, Fibonacci retracement levels are horizontal lines that show support and resistance levels.
Each Fibonacci level is associated with certain percentages or ratios used to determine highs and lows. Key levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. If buying pressure intensifies, the BNB price could rise to the next Fibonacci level in the upper range.
However, given the current trend, BNB price could fall to $526, where the gold pocket ratio is 61.8%. If selling pressure intensifies, the price could fall below the $500 support, potentially dropping further to $472.
Read More: Binance Coin (BNB) Price Prediction 2024/2025/2030
On the other hand, if the price bounces back, BNB could break the psychological resistance of $500. In this scenario, the altcoin could rise to $564 or even $601.90.
