Binance Coin trades under heightened volatility after forming potential bullish divergence signals while simultaneously showing signs of structural weakness on higher timeframes.
Analysts remain divided as the coin’s price struggles to stabilize above key support levels following a sharp retracement.
Highlight Spots Bullish Divergence on RSI
In a recent X post, market analyst Master Kenobi suggested that BNB may be forming a potential bottom, supported by bullish divergence signals visible on the Relative Strength Index (RSI). This classic technical setup occurs when the price prints lower lows while RSI simultaneously forms higher lows, implying that selling pressure is weakening and a potential reversal could follow.
Source: X
Kenobi explained that such divergence patterns have historically preceded strong upward reversals in the crypto’s price, often signaling early signs of accumulation. He added that confirmation remains critical, as a breakout above recent resistance zones and a sustained rise in volume would validate the reversal thesis.
However, the analyst cautioned that speculation of an imminent new all-time high within two weeks remains unfounded without technical confirmation. “We need higher lows, breakout confirmation, and improving momentum before we can talk about sustained upside,” he noted. Without these conditions, the divergence could fail, resulting in another relief bounce rather than a true trend shift.
Market Data Shows Decline but Maintains Structural Liquidity
According to BraveNewCoin, BNB is currently priced at $1,026.28, marking a 5.88% decline over the past 24 hours. The coin holds a market capitalization of $141.55 billion, ranking 5th globally, with $1.68 billion in 24-hour trading volume. Despite the short-term downturn, trading activity remains robust, with consistent liquidity across major exchanges, including Binance and Coinbase.
Source: BraveNewCoin
The coin’s available supply is listed at 137.7 million tokens, maintaining its deflationary model through periodic burns. The price chart reflects a steep pullback from recent highs above $1,080, extending a downtrend that has characterized most of the week’s trading sessions.
Volume metrics show that despite heavy selling pressure, institutional interest and spot activity remain stable, indicating that the market is still actively engaged rather than capitulating. However, momentum indicators point to weakening bullish control, with intraday resistance seen near $1,050 and critical support around $1,000. A sustained breakdown below this psychological threshold could trigger additional liquidations, potentially testing deeper support near $960.
Bearish Breakdown Confirmed by Market Structure Analysis
Contrasting the optimistic view, analyst AlejandroBTC delivered a starkly different assessment in a recent X update, stating bluntly, “It was fun while it lasted.” His accompanying chart depicts a confirmed breakdown from long-term support zones, indicating that BNB has lost its uptrend structure established since early 2023.
Source: X
The highlighted red distribution zone marks a former resistance area where sellers historically dominated, and the price has now decisively moved below it. Alejandro interprets this move as part of a structural reversal, implying that the recent correction could evolve into a prolonged bearish phase or multi-month accumulation range.
Technical readings further emphasize the risk of a deeper pullback, with the loss of horizontal support marking a transition from bullish to bearish market structure. The sharp wick beneath the blue trendline may represent panic selling or capitulation, but Alejandro cautioned that unless the asset quickly reclaims its broken support, downside continuation remains the most probable scenario.