BNB News Today: BNB Faces Pivotal $805 Challenge—Will It Plunge Further or Spark a Bullish Recovery?

BNB Faces Downward Pressure Amid Weak Market Signals

The native asset of the Binance blockchain, BNB, has dropped below $850, with technical analysis pointing to continued bearish momentum. Increasing liquidations of long positions are intensifying short-term downside risks, raising alarms among investors. Attention is now on the $805 support level, as analysts caution that a fall beneath this point could trigger a cascade of forced liquidations, potentially pushing BNB toward the $700 range.

Momentum indicators, such as the relative strength index (RSI), have entered oversold territory, signaling persistent selling activity. Bulls are struggling to regain control, and a decisive move above the $875 resistance zone is needed to counteract the prevailing bearish sentiment and revive hopes for a rally toward the $1,050 mark, as suggested by a double-top chart formation. Despite this, derivatives data shows a bias against buyers, with more than $20 million in long positions at risk if the $805 level fails to hold.

On-chain statistics paint a challenging picture. Recent data reveals that daily transactions on the BNB chain have dropped by nearly half, reaching 15.1 million in November, according to DeFiLlama. Decentralized exchange activity has also shrunk by over $5 billion. With network usage now at just 19%, there is a clear disconnect between price movements and underlying blockchain activity. Despite these obstacles, BNB has managed to stabilize just below $900, with narrow trading ranges and falling volumes suggesting that major players may be adjusting their positions.

Traders are monitoring the market for any indication of stabilization. For a meaningful recovery, BNB would need to break through key resistance levels and see a revival in on-chain engagement. Until these conditions are met, the threat of further declines remains, with a 47.5% downside risk from the $805 area pointing to $700 as a crucial psychological threshold.

Potential Catalysts and Ongoing Challenges

• Upcoming network upgrades are expected to improve scalability and support advanced DeFi and AI solutions.
• BNB's ongoing token burn program—$1.2 billion was burned in Q3 2025—may help boost demand.
• The U.S. SEC is currently reviewing VanEck's application for a spot BNB ETF, which could bring additional liquidity if approved.

Nevertheless, the outlook for BNB remains uncertain, as broader economic factors and volatility across the crypto sector continue to pose significant hurdles.