The Binance Coin extended its weekly decline, breaking a major psychological threshold.
Investors are closely monitoring bearish signals as Changpeng Zhao’s presidential pardon stirs up the market.
Key support levels are now under pressure amidst widespread stress on large-cap digital assets.
On November 17, BNB continued its weekly bearish movement by breaking below the $900 threshold, a critical psychological level that had served as support for several weeks.
This drop occurs within a broader stress environment affecting major cryptocurrencies, but it also stems from the controversial news surrounding Changpeng Zhao, founder of Binance.
The market reacted negatively, with BNB losing more than 8% over the week and dragging down other tokens linked to the Binance Smart Chain ecosystem.
Technical analysis of BNB reveals several concerning signals for short-term holders.
The 14-period RSI has dropped to neutral territory around 42, indicating a loss of bullish momentum without reaching oversold territory.
If it fails to regain $932, it could fall to the demand zone at approximately $730, representing a drop of nearly 22% from its current price.
Immediate support sits around $880, a historical consolidation zone that held during previous corrections.
If this level fails, the next bearish targets are around $850 and then $806, representing an additional 5% decline from current levels.
These zones correspond to 4-hour order blocks.
On the upside, bulls will need to reclaim the $920 threshold, then $936 to invalidate the short-term bearish scenario.
A daily close above this level could trigger technical buying and target the next resistance at $950.
However, volumes remain moderate, suggesting a lack of conviction from buyers at these price levels.
Implied volatility on BNB options has increased by 15% this week, reflecting market uncertainty regarding recent developments.
Options traders are currently favoring defensive strategies with a put/call ratio rising to 1.3, indicating increased hedging against further declines.
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