Market Overview: BNBUSD1 Faces Key Rebound and Volatility Surge

Summary
• Price tested key support at $834–835 before rebounding amid rising volume.
• A bearish engulfing pattern formed near $839–840 as momentum slowed on RSI.
• Volatility expanded sharply post-23:45 ET as price dropped to $827, breaking lower BB.
• Turnover spiked during the 24-hour low, indicating short-term capitulation risk.
• Fibonacci 61.8% level at $828–829 now critical for near-term direction.

BNB/World Liberty Financial USD (BNBUSD1) opened at $840.17 on 2025-12-25 at 12:00 ET, reached a high of $842.10, touched a low of $825.45, and closed at $840.31 on 2025-12-26 at 12:00 ET. Total volume over 24 hours was 2,836.66, with notional turnover of $2,363,223 USD.

Structure & Formations

Price action revealed a bearish engulfing candle at the $840–841 level, signaling potential exhaustion in the upward move. A doji formed around $839.28 as buyers re-entered near support. A sharp selloff to $827.27 at 23:45 ET broke the lower Bollinger Band, confirming increased bearish momentum.

Moving Averages and Momentum

The 20-period and 50-period moving averages on the 5-minute chart converged around $840, offering initial resistance. RSI dipped below 30 during the selloff, indicating oversold conditions, but failed to produce a strong rebound. MACD showed bearish divergence in the late hours, reinforcing the likelihood of a near-term correction.

Volatility and Volume

Bollinger Bands widened significantly after 23:45 ET, signaling a volatility expansion and heightened uncertainty. Volume spiked to 599,019 during the selloff, confirming bearish conviction. A notable divergence emerged between volume and price during the late rebound: volume declined despite rising prices, suggesting weak follow-through demand.

Fibonacci and Turning Points

Fibonacci 61.8% of the key swing from $842.10 to $825.45 is at $828–829, forming immediate support. Buyers may test the 38.2% retracement level at $835–836 in the coming hours, where a sustained close above would hint at a potential reversal.

Market appears poised for a consolidation phase around $838–840 in the next 24 hours, with a risk of further downside if $828 fails to hold. Investors should remain cautious on long positions given the recent volatility and potential for renewed selling pressure.