Binance coin (BNB) is down 12% in a month – should you buy this dip?
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The general sentiment in crypto, for the most part, this month has been negative. We have seen sell-off after sell-off as investors weigh a hawkish fed and fears of global economic slowdown due to Omicron. As a result, most coins have declined, and Binance Coin (BNB) has backed the wider trend in the market. The coin has plummeted 12% this month alone. So, is it time to buy this dip? Here are some important pointers though:
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Bearish sentiment in crypto will continue into 2022 unless something drastic happens.
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Risk-off sentiment and reduced liquidity into the holiday could make any Santa rally unfeasible
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BNB must test upside resistance at around $532 if indeed a break out rally will come this year
Data Source: Tradingview.com
BNB – price action and analysis
It’s been a very torrid time in crypto this December. So, it’s not a surprise that BNB is down for the month. At the time of writing this post, the coin was already 12% lower in December. An early morning sell-off at the start of Monday trading also saw intraday losses jump nearly 4%, continuing a downward trend that started off with equities.
But unlike most low and medium cap coins, BNB is not that far away from this years’ all-time highs of around $686. While we have some coins lose nearly 70% off 2021 highs, BNB is still within the 25% mark.
Should you buy this dip?
A dip of 12% on any asset over a month is always worth looking at. But downward pressure on BNB has still not abated. 2021 is poised to end on a difficult tone for crypto bulls and as such, it is possible that BNB will slide further. The best time to assess the dip would be after Christmas or at the beginning of the year.
Cryptocurrency
