BNB has been under consistent selling pressure this month, with the cryptocurrency dropping nearly 9% below $1,000. This decline extends the overall market downtrend and weighs on major altcoins.
However, historical indicators suggest that BNB’s recovery could be quick once accumulation begins at discounted levels.
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BNB investors may accumulate
The NVT signal, which measures the network’s reputation for transaction activity, is currently at its lowest level in 2 years and 3 months for BNB. This development typically indicates that the asset may be undervalued as on-chain transfer volume begins to outpace market capitalization growth.
Historically, this situation preceded a sharp upward correction.
This low NVT value could indicate that investors are starting to view BNB as a bargain opportunity and that the current price range is a potential bottom for the market. If accumulation strengthens from this level, there will be buying pressure and prices may stabilize.
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Short-term holders’ net unrealized gains and losses (STH NUPL) have now fallen into the surrender zone, another indicator of an impending reversal.
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Generally, short-term holders tend to sell their stocks quickly when they see a profit. However, during the capitulation stage, they are often accumulated at low valuations rather than being sold at a loss.
Historically, prolonged declines in the STH NUPL indicator to capitulation have coincided with the end of major downtrends. For BNB, this pattern suggests that the continued decline could soon turn into a price rebound as new accumulations prompt a shift in optimism and recovery sentiment.
BNB price is on a downward trend
BNB price is now just below the $1,000 resistance at $987, after falling 9% since early November. The month-long downtrend is testing investor confidence, but strong on-chain signals mean a rebound may be in the offing.
If the bullish momentum returns, BNB could break the $1,000 threshold and target $1,046, breaking the downtrend. Continued accumulation could push the price towards $1,136.
However, if the overall market weakness continues, BNB may reconsider support at $936. Losing this level would invalidate the bullish outlook and expose the token to a decline below $902.
