Binance Coin (BNB) price experienced a significant reversal this week as sentiment in the crypto and stock markets declined. The BNB token dropped to a low of $600 on Tuesday, down from its all-time high of $724.

The sell-off in Binance Coin was triggered by investors shifting to a risk-off sentiment following last week’s strong nonfarm payrolls (NFP) data. This downturn also coincided with Bitcoin nearing the $65,000 level and Ethereum falling below $3,500. The total market cap of all digital coins fell by over 3% in the past 24 hours, while the crypto fear and greed index dropped to 60.

This decline is partly due to anticipation of Wednesday’s Federal Reserve decision. Analysts expect the Federal Reserve to leave interest rates unchanged between 5.25% and 5.50%.

The central bank is also expected to indicate that it will remain data-dependent when deciding to cut interest rates. Jerome Powell has previously stated that more evidence is needed to confirm that inflation is moving towards the target of 2.0%.

Record High Was Brief

Binance Coin’s recent crash marks a significant reversal from last week when it jumped to a record high of $725. At its peak, the token’s market cap exceeded $106 billion, making it larger than companies like Deere, KKR, Palo Alto Networks, and ADP.

The plunge in BNB token has also coincided with a drop in futures open interest, which has fallen from last week’s high of $1 billion to $706 million.

Binance Coin Price Forecast

The daily chart shows that the BNB token price has dropped from last week’s $724 to the psychological level of $600. It has moved to the 23.6% Fibonacci Retracement point and crossed the key support level at $645, its highest point on March 16th.

Binance Coin has remained above the 50-day and 100-day Exponential Moving Averages (EMA), while the two lines of the MACD have formed a bearish crossover. The histogram has also dropped below the neutral level.

Therefore, the token may go through this shakeout period for a while before resuming its bullish trend. If this occurs, it could potentially retest the all-time high of $725 by the end of this week or next week.

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