- The bearish wedge pattern and negative funding rates signal a potential downside for BNB.
- Derivatives activity surges, but mixed signals keep traders cautious about BNB’s next move.
Binance Coin [BNB] is under pressure as it forms a rising wedge pattern on the weekly chart, a technical structure often signaling bearish outcomes. This pattern, combined with mounting resistance levels, raises questions about its ability to hold its ground.
At press time, BNB was trading at $676.54, marking a 2.38% decline in the last 24 hours. Therefore, the token’s price action is at a pivotal point, and traders are bracing for its next move.
Will it break down and confirm a broader bearish trend, or can it defy expectations?
BNB price action analysis: A critical test for support
The rising wedge pattern on the weekly timeframe indicates that BNB’s price momentum is weakening. Additionally, the failure to push beyond key resistance levels has created market uncertainty.
As a result, traders are closely watching the $609.6 support level, which could act as a short-term safety net. However, if selling pressure continues to grow, BNB could experience an accelerated decline.
Source: TradingView
Binance funding rates: Bearish sentiment intensifies
BNB’s funding rates on Binance are currently negative at -0.0389%, signaling an increase in short positions. This development highlights a shift in market sentiment, with traders expecting further price declines.
Moreover, prolonged negative funding rates often lead to additional downside momentum. However, the possibility of a short squeeze remains if bullish traders regain control.
