**BNB Faces Bearish Trend but Short Squeeze Potential Looms Near $950 Resistance**
*Published on BitcoinEthereumNews.com*
Binance Coin (BNB) price recently dropped below the $1,000 mark, driven by shrinking on-chain activity and declining decentralized exchange (DEX) volume on the Binance Smart Chain network. This downturn pushed BNB to test the critical $827 support level, a zone that held firm during previous months. Notably, this support area, significant in August and September, once again demonstrated strong demand, preventing further decline.
On the daily chart, BNB’s bearish trend remains intact. However, the internal price structure reveals short-term bullish shifts following the breach of a lower high at $906.5. Traders are closely watching the resistance near the $950 zone, a key battleground established in November, which could challenge any upward momentum.
Liquidation data from CoinGlass highlights high-leverage clusters between $910 and $920. This concentration of positions may trigger a short squeeze, creating an opportunity for a price spike before any potential resumption of the downtrend.
### What Caused the Recent Binance Coin Price Drop Below $1,000?
The notable decline of Binance Coin below $1,000 stems mainly from diminishing on-chain activity paired with reduced DEX volume. These factors reflect a cooling demand on the Binance Smart Chain, sparking bearish sentiment among market participants.
Despite this, the robust $827 support level tested during the recent drop previously served as a reliable floor during August and September. This demand zone helped absorb selling pressure and could play a crucial role in stabilizing the price.
### How Is Binance’s Leadership Change Impacting BNB Prices?
Binance’s recent shift in leadership strategy—from a focus on hyper-growth to a more balanced platform approach—has the potential to subtly influence BNB’s price trajectory. Analysts suggest this transition aims to enhance regulatory compliance and sustainability, which may help stabilize the ecosystem amid mounting external pressures.
At the same time, ongoing legal challenges, including the North Dakota lawsuit against Binance, continue to introduce uncertainty that dampens investor confidence. Financial experts at Bloomberg report that such regulatory scrutiny has historically led to price declines in the range of 10-15%.
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As volatility continues in the market, traders and investors should monitor these key support and resistance levels carefully. Understanding the evolving technical landscape and leadership dynamics behind Binance Coin can help make more informed decisions in this unpredictable environment.
https://bitcoinethereumnews.com/tech/bnb-faces-bearish-trend-but-short-squeeze-potential-looms-near-950-resistance/