BNB’s Vulnerability to Support Loss
Ali Martinez has indicated that the price of BNB could face a significant correction if it fails to maintain the crucial support level of $240. This concern comes on the backdrop of recent market turbulence.
While Bitcoin underwent a correction, plummeting to $29,000 in the previous trading session, the broader altcoin market also experienced declines alongside BTC.
The situation was exacerbated by Binance, the world’s largest crypto exchange, announcing the closure of its cryptocurrency payment service. This announcement added to the downward pressure on BNB.
Assessing the implications of this decline, Ali Martinez warned that BNB’s failure to secure the $240 support level might lead to a substantial correction.
According to the analyst, there’s a possibility of BNB’s value plummeting by 20-30% if it is unable to reclaim the $240 support.
“The recent drop is particularly concerning as it’s signaling the potential confirmation of a bear flag for several altcoins, including BNB. If BNB’s inability to regain the $240 support persists, we might witness a notable price correction in the range of 20% to 30%,” cautioned Ali Martinez.
As of the latest data, BNB is trading at $234.
Impact on Altcoin Market
The recent correction didn’t only affect BNB. Multiple altcoins experienced declines in the past 24 hours.
Altcoins such as Ripple, Dogecoin (DOGE), Cardano (ADA), Solana (SOL), Polkadot (DOT), Polygon (MATIC), Litecoin (LTC), and Avalanche (AVAX) have all witnessed price drops ranging from 4% to 8%.
Hedera (HBAR), a project that collaborates with FedNow, bore the brunt of the correction even more significantly, experiencing a decline of up to 15%.
This market turbulence serves as a reminder of the interconnected nature of cryptocurrencies and the need for investors to closely monitor support levels and market trends.
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