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Binance Coin (BNB) has plunged about 24 hours after it posted a new all-time high (ATH) of $859.56 on the crypto market. The sudden reversal was triggered by investors seeking profits following the massive spike in value.
BNB profit-taking soars as volume drops
As per CoinMarketCap data, Binance Coin opened the day’s trading at $840.58. However, the selling activities of investors seeking gains increased pressure on the asset, causing it to plummet. As of press time, the BNB price was changing hands at $815.42, which represents a 2.78% decline in the last 24 hours.
Investors have also pulled back following the loss of over $25 billion within this period. Binance Coin’s trading volume is deep in the red zone by a significant 23.38% or $3.03 billion. Additionally, the pullback is a result of the coin being overbought.
Notably, the Relative Strength Index (RSI) of BNB is at 76.04. This overbought condition possibly sparked the profit-taking trend on the market as upward momentum weakened.
With the current setup, Binance might slip from the $800 price zone if the downward momentum lingers. BNB needs to stay above the $808.85 support level if it is to retain some of the gains it achieved within the last seven days.
Binance Coin still up 25% this month despite pullback
Meanwhile, the broader cryptocurrency sector has also taken some hits as the total market cap has dropped by 0.34% to $3.88 trillion within this period.
Despite the bearish pressure on Binance Coin, the asset has gained 6.72% in the last seven days and 25.29% in the previous 30 days as institutional backing grows.
The development indicates that BNB is not underperforming for investors. As recently reported by U.Today, Binance Coin has recorded 10,000 times growth over the last eight years.
Stakeholders in the broader crypto space consider this a remarkable achievement given the leadership change at the exchange with the departure of its founder, CZ.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team