Binance Coin [BNB] breaks $260-support area as death cross scares creeps in

Binance Coin, BNB’s latest edition of quarterly burn event of almost $400 worth of tokens has failed to charm the bulls as the market conditions remained tepid. Notably, previous burns have prompted upticks in price.

Meanwhile, the collective market cap fell to $1.19 trillion as top crypto-assets tumbled down to multi-week lows following Bitcoin’s [BTC] break below $30,000. As a result, Binance Coin’s weekly losses extended to 17.66%. Volatility in the market increased which could induce abrupt price action in the asset.

Over the past 24-hours, BNB was down by 13.42% over the past 24-hours which drove the coin to $259.7. At the time of writing, the digital asset stood at a market cap of $43.87 billion and a 24-hour trading volume of $1.67 billion.

BNB Daily Price Chart:

The gauge between the moving averages 50 [Pink] and 200 [Yellow] has been decreasing as they headed for a potential death cross in the near term. The 200 DMA, on the other hand, made headway after Binance Coin suffered two back-to-back pullbacks. The 100 DMA acted as a major resistance point for the BNB candlestick arrangement.

The volume on the Binance Coin’s daily chart projects a gloomy picture.

The CMF slid below the half-line indicating an outflow of money from the coin market as bearing pressure deepened. The MACD also sustained a bearish crossover following the correction depicting buying demand dried up at higher levels. Additionally, BNB’s move towards the oversold region was indicated by RSI’s drop to 33-area.

According to the above charts, heightened sell pressure has damaged recovery cues as price made a u-turn. The bears have renewed their selling as BNB broke the $260 level. The digital asset now risks a fall to its nearest support area of $210, a level that was last seen in the first week of March this year.

The overhead resistances under which BNB remained trapped were at $325, $380, and $419 respectively.

Chayanika Deka: Chayanika is a full-time journalist at TronWeekly with over two years of experience. A graduate in Political Science and Journalism, she focuses on the political and financial impact of cryptocurrency and blockchain developments.