After surging to a high of $788, BNB turned downward! Can BNB stand firm at the high point again?

With the optimism of various sectors on Donald Trump's loosening of Cryptocurrency regulation, many old coins that were once shrouded in regulatory haze have surged one after another, and BNB has also emerged in this wave of enthusiasm, becoming the latest mainstream Cryptocurrency to set a new historical high after BTC, Solana (SOL), and Tron (TRX).

According to CoinGecko market data, BNB successfully broke through the key resistance zone of '700 US dollars to 720 US dollars' in the past 3 years yesterday (4), and once surged to 788.84 US dollars, creating a historical new high price.

However, this amazing surge only lasted less than a day and plummeted rapidly. BNB has now fallen to around $711, with a 6% drop in the past 24 hours.

Why did it fall after reaching a high?

The surge brought about by market frenzy is not infinitely sustainable. What factors have led to the "high points down" trend of BNB? Further exploration reveals multifaceted influences:

Realizing profits triggered a dumping frenzy. When BNB price broke through the resistance range of the past 3 years (from $700 to $720) and hit a historical high, early investors and short-term traders quickly realized profits, leading to a rapid increase in dumping pressure. This phenomenon is particularly common in the competitive coin market, as its volatility attracts a large amount of short-term capital, and a slight price decline may trigger a larger scale of selling pressure.

The price Fluctuation of cryptocurrencies is usually closely related to market sentiment. With the high of BNB, investors' concerns about "high-risk positions" have increased, and some funds have quickly flowed to other competing coins that are still in the early stages of the rise, in order to capture new momentum. This switch in fund flows not only weakens the short-term upward momentum of BNB, but also intensifies the pullback amplitude.

From the perspective of Technical Analysis, BNB rapidly rose to $793 in the short term, far exceeding its average support range, indicating an 'Overbought' signal in the market. In addition, the significant Trading Volume in the short term also indicates signs of market overheating, further increasing the possibility of price correction.

The impact and uncertainty of macro factors Although the market is optimistic about the expectation of loose regulation brought by Trump's election, this Favourable Information has not been fully realized, and there is still uncertainty in the market in the short term. Once investors believe that Favourable Information has been over-digested, price pullback is inevitable.

Despite the sudden drop this time, BNB, as the core Token of the Binance ecosystem, still has certain fundamental support.

With the destruction mechanism of BNB and the recent strengthening of Compliance by Gate.io, this will help stabilize investor confidence. However, in order for BNB to regain its high point, in addition to the continued enthusiasm of the market for competitive coins, further clarification of the global regulatory environment and the continuous development of the Gate.io ecosystem are also needed.

After hitting a new high of $788, BNB turned down! Can BNB stand firm at the high point again?