BNB Drops to $560: Bulls Face Critical Test Amidst Bearish Trend

Binance Coin [BNB] has dropped to the $560 level, raising concerns about the bulls' ability to defend this key support zone. The price chart indicates a bearish trend, with the OBV (On-Balance Volume) indicator showing steady selling pressure throughout 2025. The daily chart's market structure is also bearish, with the price failing to set a new high during the February bounce and approaching a lower low. The next targets for BNB are the $534 and $464 levels, which were significant during the range formation from July to November 2024.

The Open Interest (OI) chart reveals a downtrend in OI for nearly three months, highlighting bearish sentiment. The OI peaked in December at $1.27 billion when the price reached $735, indicating increased bullishness and speculative trading. However, the OI has since declined to $529 million at press time. Examining the BNB Realized Cap HODL Waves, we see a spike in activity among younger bands in May 2021 and a smaller one in January 2022. As these holders grew older, their numbers diminished, showing some selling pressure throughout the bear market in 2023. The HODL wave was most clearly distinguished by the spike of activity in August 2020, with profit-taking activity observed as prices reached the $600 region.

As BNB faces this critical support level, investors and traders are closely watching to see if the bulls can defend it. The price action since the February bounce has been completely retraced, and the bearish market structure suggests further losses could be in store. However, the HODL Waves chart shows rising HODL activity over the past three months, indicating that some investors remain committed to the asset. If the bulls can successfully defend the $560 level, it could signal a potential reversal in the market. However, if the price breaks below this support zone, it could lead to further losses and a potential test of the $534 and $464 levels.