Binance Coin (BNB) succumbs to bearish pressure alongside other altcoins in the market. According to the latest market data, the token is down nearly 10% since last week representing a big slash in value for investors in the long-term. The huge drop is due to the current underperforming market after the major cryptocurrencies slipped with Bitcoin and Ethereum by almost 10% respectively.
Despite the recent regulatory turmoil between the Securities and Exchange Commission and Binance, BNB still shows some strength as it maintains its top four spot, topping SOL and XRP.
Binance Coin Market Vs Macroeconomics
The early half of August is held in high regard by both crypto finance and traditional finance investors as major economic indicators are set to be announced. With the past six indicators flashing red or neutral, it remains to be seen whether the next few will be bullish for the broader financial world.
But last week, the Federal Open Market Committee held against lowering interest rates as inflation was still “somewhat elevated.” However, this opened the road to September rate cuts as the inflation slows, helping the market gain gradual ground in the long run.
Although the market remains somewhat optimistic for the September cut, it has since faded as the broader market slips as investor anxiety remains high. The S&P 500 and Dow Jones fell by almost 2% respectively.
This further exacerbated the market correction within the crypto market. As of writing, the crypto market is down more than 2% in the past 24 hours. BNB was not spared, with the BNB Chain metrics falling amidst the market downturn.
Despite this, long-term investors in the token continue to remain strong despite bearish market conditions. According to CoinGlass, BNB market positions remain majority long with a slight uptick in the short position takers.
However, derivative contracts featuring BNB took a dip with the open interest dropping by a significant margin.
Although the token follows the broader market, BNB still remains a strong investment despite the hostile market conditions.
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Crucial BNB Level Remains But For How Long?
The hostile market environment is slowly dying down but with the current uncertainties within the macroeconomic side of things, it remains to be seen whether the BNB bulls can continue to stem the tide.
Keeping aside price, having a majority of long positions for the token is advantageous for the bulls as it helps maintain investor confidence in the token. Despite this, the bulls have a long way ahead.
Stabilizing the price around the $514 price range should be their number 1 priority. A bearish breakthrough on this level will lead to more bleeding, which might flip investors from long positions to short positions.
If held successfully, BNB bulls have a strong jump-off point to retake the late-July levels of $558.
Featured image from Pexels, chart from TradingView