Binance Coin price has crashed by double digits from its highest level this year, and an incoming death cross pattern points to more downside. The BNB token was trading at $835 today, December 24, much lower than its year-to-date high of $1,373.
Binance Coin Price Technical Analysis
The daily timeframe chart shows that the BNB price has declined significantly over the past few months, and this trend may intensify in the coming weeks.
The token is slowly forming a bearish pennant pattern, which is a common bearish continuation sign. It has already formed the inverted flagpole and is now in the process of forming a symmetrical triangle.
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Most importantly, the token is about to form a death cross pattern, which happens when the 50-day and 200-day Exponential Moving Averages (EMA) cross each other when pointing downwards.
Binance Coin’s Awesome Oscillator has moved below the zero line, a sign that the bearish momentum is continuing. Additionally, the token has remained below the Supertrend indicator, one of the most reliable bearish signals in technical analysis.
The token has reached the 61.8% Fibonacci Retracement level, while most oscillators are indicating a downward trend.
Therefore, the most likely scenario is that the token continues to fall, potentially to the next key support level at $695, which aligns with the 78.6% Fibonacci Retracement level.
BNB Price Has Supportive Fundamentals
The bearish BNB price forecast is based on its technicals, which have become highly negative in the past few months.
However, on the positive side, its fundamentals are among the strongest in the cryptocurrency industry.
For example, data compiled by Artemis shows that the supply of stablecoins on the BSC Chain has increased by 6% over the last 30 days to $14.7 billion. This figure makes it the third-biggest player in the stablecoin sector after Ethereum and Solana.
The number of stablecoin addresses in the network has jumped to 12 million, while the adjusted transaction volume has soared by 14% to $176 billion. The growing market share in the stablecoin industry is beneficial due to the increasing role of stablecoins within the industry.
The BSC Chain has become a major player in the DEX industry, where its DEX networks, particularly PancakeSwap, have continued to gain market share. They handled over $2.3 billion in the last 24 hours. Its perps volume jumped to over $530 million in this period.
The network also generates substantial revenue through fees, with chain fees in the last 24 hours surging to $1.53 million. This figure is important as the network usually burns the fees, a move that improves its tokenomics.
BSC has burned 495 coins in the last seven days using this model. It has burned tokens worth $234 million since introducing this model.
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