BNB is currently trading at approximately $1,072, having experienced a 10% decline over the past week. As the token hovers around this crucial support level, traders and analysts alike are closely monitoring its potential direction.
Recent technical analysis reveals that BNB has broken below a descending triangle pattern on the six-hour chart, suggesting a possible downside target of $845 if the current support at $1,000 fails to hold. This would mark a significant decline of 21% from current levels.
The token’s price dipped earlier this week towards the $1,050 support zone, with buyers now attempting to push it back above this level to avert further losses. Analyst BlockchainBaller noted that BNB is maintaining its position around the $1,060 support area, indicating that buyers are showing renewed interest at this price point.
For a bullish scenario to materialize, a breakout above the $1,107 to $1,120 range could facilitate a move toward $1,140, aligning with the 200-period and 50-period simple moving averages. The next notable resistance level is located at $1,180, coinciding with the 100-period simple moving average.
Conversely, a drop below $1,000 could signal a more severe correction, potentially sending prices down to the $955 to $930 range, marking the lows seen on September 25. In the worst-case scenario, BNB could test the $874 level previously reached in October.
Institutional Buyers Increasing BNB Holdings
Interestingly, while retail traders appear to be selling, institutional interest in BNB is on the rise. Applied DNA Sciences recently acquired 4,908 BNB tokens valued at approximately $5.3 million, with the company’s stock rising over 50% following the announcement. This purchase is part of a broader $27 million private investment deal that includes indirect exposure to a total of 10,647 BNB.
CEA Industries, another significant player, has amassed 500,000 BNB tokens at an average price of $870 each. The Canadian company aims to secure 1% of the total BNB supply by year-end, reflecting a strategic pivot towards cryptocurrency as part of its treasury strategy.
Despite the recent downturn, BNB remains a significant player in the crypto market. On October 7, BNB surpassed XRP to become the third-largest cryptocurrency by market capitalization. However, after reaching an all-time high of $1,375 on October 13, the token is now down about 21%, highlighting the volatility inherent in the crypto market.
The current market dynamics illustrate a clear disparity: while retail traders seem to be cashing out, institutional investors are strategically positioning themselves for potential future gains. As the market continues to evolve, the actions of these institutional buyers may play a crucial role in determining BNB’s trajectory in the coming weeks.
