Binance Coin (BNB) is succumbing to bearish pressure among other altcoins in the market. According to the last According to market data, the token has fallen by almost 10% since last week, which means a big drop in value for investors in the long term. The enormous drop is due to the current underperforming market after the major cryptocurrencies with Bitcoin and Ethereum respectively fell by almost 10%.
In spite of the recent regulatory turmoil between the Securities and Exchange Commission and Binance, BNB is still showing some strength maintains its top four spot, at the top of SOL and XRP.
Binance Coin Market vs Macroeconomics
The first half of August is highly anticipated by both crypto finance and traditional finance investors as key economic indicators will be announced. With the past six indicators flashing red or neutral, it remains to be seen whether the next few will be bullish for the broader financial world.
But last week the Federal Open Market Committee held a meeting in return for lowering interest rates because inflation was still “somewhat high.” However, this opened the way to interest rate cuts in September as inflation slows, allowing the market to gradually gain ground in the long term.
While the market remains somewhat optimistic about September’s rate cut, it has since faded as the broader market slides and investor concerns remain high. The S&P500 And Dow Jones fell by almost 2% respectively.
This further exacerbated the market correction within the crypto market. At the time of writing, the crypto market is down more than 2% in the last 24 hours. BNB was not spared, with the BNB Chain metrics traps amid the market downturn.
Nevertheless, long-term investors in the token remain strong despite bearish market conditions. According to CoinGlass, BNB’s market positions remain majority long with a slight increase among short position takers.
However, derivatives contracts with BNB took a dive, with open interest falling by a significant margin.
While the token follows the broader market, BNB still remains a strong investment despite hostile market conditions.
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Crucial BNB level will remain, but for how long?
The hostile market environment is slowly disappearing, but with the current macroeconomic uncertainties, it remains to be seen whether the BNB bulls can continue to turn the tide.
Apart from the price, having a majority of long positions for the token is beneficial for the bulls as it helps maintain investor confidence in the token. Nevertheless, the bulls still have a long way to go.
Stabilizing the price around the $514 price range should be their first priority. A bearish break at this level will lead to more bleeding, which could turn investors from long positions to short positions.
If held successfully, BNB bulls have a strong entry point to recapture the late July level of $558.
Featured image from Pexels, chart from TradingView
