Is BNB Parabolic Run Over or Just Paused?

BNB retraced from $1,019 to a low of $950 but rebounded and is currently trading slightly higher at the time of writing. 

The coin joins the rest of the crypto market in a recent wave of selloffs. As a result, the global cryptocurrency market cap dropped to its lowest level in almost a month. The latest selling sentiment across the market is unsurprising, as a previous analysis noted that the sector is expected to experience significant selling pressure this week.

Nonetheless, investors lost a whopping $1.14 billion in the derivatives market over the last 24 hours. Based on recent price movements, there is no doubt that the bulls are the top losers. The scenario remains the same with those who traded BNB.  They lost over $11 million. 

A closer look at the 1-day chart reveals that the altcoin has lost over 6% since the start of the day. However, a look at its price action since the week started shows it has struggled for most of the session. It wasn’t spared from Monday’s decline, which resulted in a 5% drop. 

Trading action between Tuesday and Wednesday failed to see the coin reclaim lost levels. While investors struggled to stage a buyback, the latest waves happened. As a result, questions arise about whether the parabolic run has come to an end. 

It is worth noting that aside from fundamentals, the various activities taking place in the BNB chain were some of the main drivers of its run. The launch of ASTER and other tokens sparked a massive surge in volume and demand for the native coin. 

Data from DeFiLlama reveals that DEX volume soared during this period, while net inflow was minimal for most of the uptrend. However, this changed, starting Sep 21, when inflows soared and prices reacted with a sharp retracement after peaking at $1,087. 

Will BNB Surge Higher? 

Reading from the highlighted project reveals that a new factor, distinct from the ones the asset encountered prior to the 21st, is at play, and prices are reacting to it. Recent data shows that the chain is experiencing the largest inflow in almost three months. Taking this into consideration, there is a high likelihood that the uptrend is over, and the unfolding trend will persist.

Nonetheless, a previous analysis highlighted another indication that could signal the end of the parabolic run. It noted that the asset may struggle to break above a resistance or gradually lose momentum. 

A closer look at trading action over the last three days shows no definite signs of this playing out as it previously did. However, price action between Tuesday and Wednesday shows slight similarities. After slipping below $1,025 on Monday, BNB attempted to reclaim it the next day with limited success. The previous intraday session saw the asset surge higher, retraced, and closed with a doji.

With recent prices aligning with the previous price structure that signals the end of the parabolic run, there’s a high chance it’s over. 

Aside from price movements, indicators are flipping bearish. It is worth noting that since the breakout of the bollinger bands on Sunday, BNB has mostly seen further corrections that sent prices lower. It rebounded off the middle band a few hours ago. The metric suggests further declines ahead. 

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