The Binance Coin extends its weekly decline, breaking a major psychological threshold. Investors are closely monitoring bearish signals as Changpeng Zhao's presidential pardon stirs up the market. Key support levels are now under pressure amidst widespread stress on large-cap digital assets.
On November 17, BNB continued its weekly bearish movement by breaking below the $900 threshold, a critical psychological level that had served as support for several weeks. This drop occurs within a broader stress environment affecting major cryptocurrencies, but it also stems from the controversial news surrounding Changpeng Zhao, founder of Binance.
Former President Donald Trump’s decision to pardon CZ has triggered mixed reactions within the crypto ecosystem. While some view it as recognition of the sector’s strategic importance, others question the regulatory and political implications of this decision. The market reacted negatively, with BNB losing more than 8% over the week and dragging down other tokens linked to the Binance Smart Chain ecosystem.
Technical analysis of BNB reveals several concerning signals for short-term holders. The 14-period RSI has dropped to neutral territory around 42, indicating a loss of bullish momentum without reaching oversold territory. This configuration suggests the correction could continue before finding solid support.
The daily chart shows that the price has moved below the median line. If it fails to regain $932, it could fall to the demand zone at approximately $730, representing a drop of nearly 22% from its current price.
Immediate support sits around $880, a historical consolidation zone that held during previous corrections. If this level fails, the next bearish targets are around $850 and then $806, representing an additional 5% decline from current levels. These zones correspond to 4-hour order blocks.
On the upside, bulls will need to reclaim the $920 threshold, then $936 to invalidate the short-term bearish scenario. A daily close above this level could trigger technical buying and target the next resistance at $950. However, volumes remain moderate, suggesting a lack of conviction from buyers at these price levels.
Implied volatility on BNB options has increased by 15% this week, reflecting market uncertainty regarding recent developments. Options traders are currently favoring defensive strategies with a put/call ratio rising to 1.3, indicating increased hedging against further declines.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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