Binance Coin (BNB) is under bearish pressure along with other altcoins in the market. According to Latest According to market data, the token has fallen by about 10% since last week, which represents a significant drop in value for long-term investors. The massive drop is due to Poor performance The cryptocurrency market has declined after major cryptocurrencies fell with Bitcoin and Ethereum falling by about 10% respectively.
despite of Recently Despite the regulatory turmoil between the SEC and Binance, BNB is still showing some strength as Maintains It ranks fourth, ahead of SOL and XRP.
Binance Coin Market vs Macroeconomics
The first half of August is highly valued by investors in both crypto and traditional finance as key economic indicators are scheduled to be announced. past With six indicators flashing red or neutral, it remains to be seen whether the next few indicators will be bullish for the broader financial world.
But last week, the Federal Open Market Committee held its meeting. against The Fed cut interest rates because inflation was still “fairly high.” However, this paved the way for a rate cut in September as inflation slowed, helping the market gradually gain ground in the long run.
Although the market remains somewhat optimistic about a rate cut in September, that optimism has since faded as the broader market has slid and investor anxiety remains high. Standard & Poor’s 500 And Dow Jones And decreased by about 2% respectively.
This has exacerbated the market correction within the cryptocurrency market. At the time of writing, the cryptocurrency market was under Over 2% in the last 24 hours. BNB was not spared, as BNB Chain metrics showed drop In the face of a market downturn.
However, long-term investors in the token remain strong despite the bearish market conditions. According to CoinGlass, BNB market positions remain stable The majority of Long with a slight increase in the number of shorts.
However, derivatives contracts holding BNB saw a decline, with open interest declining by a significant margin.
Although the token follows the broader market, BNB remains a solid investment despite the hostile market conditions.
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Crucial BNB Level Still Holds But For How Long?
The hostile market environment is slowly fading but with the current uncertainty on the macroeconomic side of things, it remains to be seen if BNB bulls will be able to continue to stem the tide.
Regardless of price, having a majority of long positions in a token is beneficial for bullish investors because it helps maintain investor confidence in the token. However, bullish investors have a long way to go.
Stabilizing the price around the $514 price range should be their first priority. Any downside breakout at this level will lead to further bleeding, which could push investors from long positions to short positions.
If successful, BNB bulls have a strong starting point to reclaim late July levels at $558.
Featured image by Pexels, chart by TradingView