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BNB Token Tumbles Amid Fed Rate Cut Uncertainty
13 Dec
Summary
- BNB token saw a 3% price drop to $865 following the Federal Reserve's rate cut.
- Selling pressure increased as BNB breached the $870 support zone, with trading volume surging.
- Traders are cautious, awaiting a BNB Chain network upgrade before making new positions.
The native token of the BNB Chain, BNB, experienced a notable price correction, falling 3% over the past 24 hours to trade at $865. This downturn occurred in the wake of the Federal Reserve's recent interest rate adjustment, which influenced broader market sentiment.
Selling pressure intensified as BNB broke through the $870 support zone, a level that had previously held firm. This breakdown was corroborated by a significant increase in trading volume. Further technical indicators, including a dip below the 30-day moving average and the 23.6% Fibonacci retracement level, pointed towards a potential end to its short-term uptrend.
Market participants are currently exhibiting caution, with many awaiting the completion of an upcoming BNB Chain network upgrade before establishing new positions. While resistance hovers near $868.50, a sustained recovery above $874 could alter the current momentum. Failure to do so may lead to a further decline, with the next technical support identified at $839.
