Prominent crypto traders are sharing alarming signals on Binance Coin ($BNB) from a technical analysis perspective.
@AltcoinSherpa is warning his Twitter auditory that the utility token of the Binance Smart Chain shows concerning signs. Sherpa suggests that if the current support level fails to hold, BNB could experience a significant drop of more than 20%, revisiting lows last seen in June 2022.
The daily chart shows that the BNB price forms a bearish flag consolidation pattern, being under the pressure of negative news about Binance struggling with regulators all around the world, and it looks like it is just waiting for another catalyst, not necessarily related to Binance itself.
At the same time, futures data shows that the BNB token is heavily shorted right now, sparking speculation of more Binance trouble, which, in its turn, logically means the potential for a short-squeeze near-term.
Although at the time of writing, BNB is in a clear bearish trend, which means that the probability of trend continuation is, by definition, higher than reversal. The trend is your friend, you know (until it’s not).
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