Important requirements
- Binance’s BNB is down 4.5% in the last 24 hours and is now trading below $590.
- The bearish action comes as President Trump threatens to attack Iran’s electricity grid.
BNB (formerly Binance Coin) is trading below $585 as of Thursday, continuing its three-week low.
The corrections have increased following US President Donald Trump’s announcement that the ongoing US-Iran conflict will end by the end of April, which has dampened investors’ interest in the economy.
From a technical point of view, strong indicators point to the possibility of a downward trend in BNB.
Trump’s comments affect market sentiment
Bitcoin, Ether, BNB, and XRP are in the red after President Trump warned on Wednesday that the US-Iran war could continue until the end of April. He also threatened to target Iran’s electricity supply and said Iran would be returned to the “Stone Age” if a deal was not reached.
These words have dampened expectations of a slowdown, and further dampened investor interest in the economy. As a result, the US Dollar (USD) and oil prices have strengthened, while US currencies and other risk assets have come under pressure.
Interest in selling BNB has also decreased in recent days. According to CoinGlassBNB’s long-short ratio read 0.80 on Thursday, its lowest point in a month.
The chart below shows the market sentiment, where traders are betting on further declines in BNB prices.
BNB may go down until the end of February
The 4-hour chart of BNB/USD is thin and not very active as BNB has underperformed in recent days.
Currently, BNB is trading below the 50-day, 100-day, and 200-day Exponential Moving Averages, all of which rise above the current price and establish a bullish trend.
The Relative Strength Index (RSI) on the 4-hour chart reads 42, below the neutral 50, indicating bias. The Moving Average Convergence Divergence (MACD) is also moving below zero, indicating persistent selling rather than bearishness.
If the trend continues, BNB will retest the first support at $570.16 (February low). A break below this level would pave the way for a daily downtrend and extend the control zone to the critical emotional level at $500.
However, if the bulls regain control of the market, they may face immediate resistance at $697, in line with the lower EMA.
A sustained recovery above this barrier will be needed to lower the bearish tone and show the next resistance at $790.79.
