BNB weakens around 855 USD as on-chain data and momentum indicators support the bears

BNB (Previously known as Binance Coin) is fluctuating around the 855 USD mark at the time of writing on Tuesday, after a slight correction in the previous session. Selling pressure is becoming increasingly evident as on-chain data and derivatives market indicators show a strong increase in retail investors on the sell side, while funding rates have turned negative. From a technical perspective, risk signals continue to accumulate, forcing traders to remain cautious in the short term.

Increasing retail activity and negative funding rate exert pressure on BNB

Aggregated data from the CryptoQuant futures market shows that the BNB Futures Average Order Size index — a measure of the average volume of matched BNB futures orders — is rising sharply. This development reflects a stronger participation of retail investors, a signal that is often unfavorable for BNB’s price trend.

Additionally, the Futures Taker CVD (Cumulative Volume Delta) index continues to indicate dominance of the sell side, further reinforcing a negative short-term outlook for BNB price.

Moreover, the OI-Weighted Funding Rate data from Coinglass shows that the number of traders betting on a decline in BNB outnumbers those expecting an increase. This index turned negative on Monday and recorded -0.006% on Tuesday, indicating that short positions are paying fees to long positions. Historically, whenever the funding rate drops into negative territory, BNB’s price tends to experience sharp corrections, increasing the risk of a significant decline in the current phase.

BNB Funding Rate | Source: Coinglass## BNB Price Forecast: Momentum indicators show early signs of weakening

BNB’s price was rejected at the descending trendline — formed by connecting the peaks since mid-October — on December 9, then plunged nearly 5% and retested the key support zone at 844 USD during the early trading session. On Tuesday, BNB continued to trade in the red, fluctuating around 853 USD, reflecting ongoing selling pressure.

In a negative scenario, if BNB continues to weaken and closes below 844 USD on the daily timeframe, the downtrend could extend, pushing the price further down to a stronger support zone on the weekly chart at 709.29 USD.

Daily BNB/USDT Chart | Source: TradingView Technical indicators are clearly leaning bearish. The daily RSI currently stands at 39, below the neutral 50 threshold and continues to decline, indicating increasing bearish momentum. Meanwhile, the MACD lines are converging, raising the risk of a bearish crossover — a factor that could further support the short-term correction outlook.

Conversely, if BNB successfully recovers, the upward momentum could extend toward the 50-day EMA, currently around 923.14 USD.

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