BNB Price Tests Critical $1,000 Support, Institutional Demand Surges Despite Technical Weakness
At the time of writing, BNB is trading around $1,080, a small gain of more than 1% in the last 24 hours. But the token is still about 21%
Quick overview
- BNB is currently trading around $1,080, showing a slight gain but remains 21% below its all-time high of $1,370.
- Institutional interest in BNB is rising, with companies like Applied DNA Sciences and CEA Industries making significant purchases.
- Technical analysis indicates that BNB must hold the $1,000 support level to avoid further declines, with potential targets as low as $845 if it breaks down.
- On-chain data reveals weakening demand, suggesting that sellers currently dominate the market and a correction may be imminent.
At the time of writing, BNB BNB/USD is trading around $1,080, a small gain of more than 1% in the last 24 hours. But the token is still about 21% lower than its all-time high of $1,370 on October 13, and technical indicators are alerting traders that they should be careful.
BNB Treasury: Institutional Accumulation Wave Builds Momentum
In the past few weeks, a strange trend has emerged: publicly traded firms are racing to add BNB to their corporate coffers. Applied DNA Sciences made the news on Wednesday when its stock price jumped more than 50% after the company announced it had bought 4,908 BNB tokens for almost $5.3 million. The biotech company got its position through a $27 million private investment in public equity (PIPE) agreement that included $15.3 million in cash and stablecoins and $11.7 million in OBNB Trust units.
CFA Chief Investment Officer Patrick Horsman said that Applied DNA wants to use the money it makes to put into a “yield-focused treasury strategy with significant direct and BNB equivalent exposure.” The corporation now owns about 10,647 BNB indirectly through a number of different instruments.
Interest from institutions grew when CEA Industries Inc., a Canadian vaporizer firm that switched to becoming a BNB treasury company in July, said it had bought 500,000 BNB tokens at an average price of $870 per token. CEA is the biggest BNB treasury firm right now, and they want to possess 1% of the total BNB supply by the end of the year.
Bloomberg reported on October 13 that China Renaissance Holdings Ltd., an investment bank based in Beijing, is in talks to raise about $600 million to establish up a digital-asset treasury in the US to buy BNB. This news added to the momentum.
BNB/USD Technical Analysis Points to Critical Support Test
Even while institutions are saying good things about BNB, its price action indicates a different reality. The coin has lost 10% of its value in the last seven days, and a number of technical indicators show that bulls need to protect the $1,000 psychological support level to keep the drop from going worse.
BlockchainBaller, an analyst, said that BNB is “holding strong around the $1,060 support zone,” and buyers are interested at these levels. If the price breaks out above the $1,107–$1,120 zone, it might rise to $1,140, where the 200-period and 50-period simple moving averages are currently meeting. Resistance is at $1,180, which is where the 100-period SMA is.
But it looks like the risk on the downside is more urgent. If the drop continues, BNB could hit a target of $845 after breaking below a descending triangle pattern on the six-hour chart. The first major support zone is between $1,050 and $1,020. The next important level is $1,000, which has been a support level since September 30.
A decisive closure below $1,000 might start a chain reaction that takes the price down below the 100-day exponential moving average at $955 and the low from September 25 at about $930. In the worst case, BNB might go back to the October 11 wick near $874, which would be a loss of 21% from where it is now.
The relative strength index has dropped from 86 to 41 in the last two weeks. It is now trading below the neutral 50 threshold, which means that bearish momentum is growing.
On-Chain Data Reveals Weakening Demand
On-chain data show that prices are likely to go down in the near future. Since BNB hit its all-time high, the 90-day spot taker cumulative volume delta (CVD) has turned firmly negative. This means that sell orders now make up the majority of the order book. This indicator, which looks at the difference between buy and sell volume over three months, suggests that traders are still taking profits.
The negative CVD means that there is more supply than demand at the current price levels, and sellers are still in charge. Historical patterns show that long-term negative CVD often comes before long-term corrections, as the existing imbalance between buyers and sellers needs to be fixed.
BNB Price Prediction: Bulls Face Make-or-Break Moment
In the future, BNB’s path will depend on whether bulls can hold the $1,000 support level. If the defense works, it might lead to a recovery toward $1,140–$1,180, where moving average resistance groups are. If this important level isn’t held, though, there is a chance of a decline toward $845–$874, which would be a big danger for the downside.
David Namdar, CEO of CEA Industries, called BNB the “most overlooked blue-chip in the market,” which means that the token’s fundamentals are still solid even though it has been underperforming technically lately. This argument is backed up by the fact that more institutions are starting to use it, although prices are expected to stay volatile in the medium term while technical issues are worked out.
In the next several sessions, traders should keep a close eye on the $1,000 level. If the price breaks over $1,120 and stays there, the bearish descending triangle pattern will no longer be valid, and the next leg up could begin. On the other hand, if trade stays below $1,000 for a long time, it would confirm the breakdown scenario and make it more likely that losses will get worse.
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