Binance Coin (BNB) took another hit on December 29, falling more than 1% to trade below $850. The token now sits 38% below its year-to-date high of $1,375, as bearish signals intensify.
Bearish Pennant and Technical Weakness
On the daily chart, BNB has formed a bearish pennant — a pattern that typically signals continuation of the prior downtrend. The price is hovering near the 61.8% Fibonacci retracement level, a zone that often sparks a bounce, but the token remains below both the Supertrend indicator and the 50-day Exponential Moving Average (EMA). A breakdown below $700 would represent a 20% slide from current levels, putting the next target at the 78.6% Fibonacci retracement. Conversely, a recovery above $945 would invalidate the bearish setup.
On-Chain Metrics Signal Fading Demand
Spot trading volume has collapsed from $15 billion earlier this year to just $1 billion on Monday. Futures open interest also halved — from $2.7 billion in October to $1.26 billion. Activity on Binance Smart Chain (BSC) has nosedived: daily transactions plunged 80% over the past 30 days to only 400 million. The drop in network usage slashed total fees by 14% and consequently reduced the number of BNB tokens burned, further weakening the deflation narrative.