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- The BNB price plunges 31% amidst a broader market crash.
- Widespread liquidations and outflows exacerbate the downturn.
Binance Coin [BNB] has been badly affected, leading to a steep fall of 31% over the past four days. This decline was part of a wider market crash that has led to major losses for most cryptocurrencies.
The global crypto market was suffering from sell-offs, and BNB was not an exception. From $634.1 per coin to $434.5, the price of this coin went down, breaking crucial support levels, thus raising fears of further declines in the future.
Source: Tradingview
The stochastic relative strength index stood at 0.06 as of press time. This indicates an oversold zone. However, the fear and greed in the current market situation may not amount to further losses.
Fuel to the fire
The fall of the market recently has led to a lot of liquidation, with BNB being hit so much by this. According to Coinglass data, an increase in liquidations is happening around the $450 level.
The concentrated nature of these sales is shown as a black hole in the BNB Liquidation Heatmap data. This is indicative of traders’ anxieties as the market collapsed.
By forcing sellers to offload their holdings, they exacerbated downward pressure on BNB price and thus contributed significantly to its plummet.
Source: Tradingview
The silent bearish signal
Another setback for BNB is that the token has experienced major outflows, which worsened the sell-off. The inflow and outflow data from Coinglass indicates a significant outflow of BNB Spot, whereby investors hurriedly withdrew their holdings.
Read Binance Coin’s [BNB] Price Prediction 2024-25
This movement not only emphasizes the current bearish mood but also creates anxieties around the future of the currency.
Source: Coinglass
BNB’s recent 31% plummet is a result of a more encompassing market crisis affecting the whole cryptocurrency universe. The drop is linked to the combined pressures of liquidation and substantial outflows.
