BNB cooled off after soaring above $800 in December. As of the time of writing, the altcoin has fallen to around $700, indicating increased profit-taking after reaching an all-time high of $793. But can the altcoin hold above the $700 level before this week's Federal Reserve interest rate decision?

BNB price prediction: Can $700 hold?

Since November, the price of BNB has been in an upward channel. The last two price consolidations occurred near the 4-hour 50EMA (exponential moving average, yellow) and fell to the lower bounds of the channel.

In recent days, BNB's price has been fluctuating above the moving average and the midpoint.

If the moving average is broken as a support level, it may fall below $700. Additionally, demand has slowed, and the low reading on the RSI indicates this.

At the time of writing, the price momentum has also weakened, and the decline in the ADX (Average Directional Index) suggests that BNB may fall to $700 or below.

BNB technical indicators show growth momentum

Technical analysis has sent mixed but encouraging signals. The weekly RSI is at 52.82, indicating increasing buying pressure while still below the overbought threshold of 70.

Additionally, the Bollinger Bands indicator shows expanding volatility, with prices continuing to test the upper band. However, such tests often lead to short-term pullbacks.

Therefore, traders should remain vigilant for corrections while monitoring consolidations above $700, which would indicate stronger bullish momentum.

Social volume and market sentiment

Although social volume indeed fell from a recent peak of 169 to a level of 108 at the time of writing, this may indicate a shift in focus from speculative trading to sustained institutional activity.

A decrease in social topics usually aligns with price stability, providing a healthier foundation for long-term increases. However, market participants should closely monitor a revival in discussions, as spikes in social activity often precede significant price movements.


Whales cut BNB holdings

According to the small green bars for whale and retail increments, whales increased their positions slightly during the ATH surge in early December.

However, they have cut positions in the past few days, which aligns with the price pullback to $700.

Outside of whales, demand across the futures market is limited, with open interest (OI) dropping nearly 50%, from $800 million to $433 million. This indicates short-term bearish sentiment.

But can weak sentiment and demand push BNB below $700?

According to Coinglass's weekly liquidation chart, the upward liquidity levels (shorts) are at $734 and $750.

Conversely, leveraged longs are concentrated at $690. Market makers chasing liquidity for leveraged longs could effectively push BNB below $700 before targeting the upward liquidity at $734.

In summary, the demand for BNB from whales is low, market sentiment is sluggish, which may accelerate its fall below $700. However, if market sentiment improves, liquidity at $734 and $750 may become attractive.

From a technical perspective, BNB's movement is not as pessimistic as ADA. However, the price is closer to support than to resistance.