Telegram Coin BANANA Experiences Initial Setback with 21% Price Drop

Recent Price Decline

Telegram's BANANA coin has experienced a significant 21% drop in value over the past two weeks, falling from $72 to $56. This decline has dampened the enthusiasm of BANANA holders, who have responded by selling off their holdings.

The recent price drop has led to the largest recorded losses for BANANA, with realised losses approaching $1 million in the past week. Many investors have moved their assets to exchange wallets in response to the downturn.

BANANA Realized Losses. Source: Santiment

Opportunity for Accumulation

Despite the losses, BANANA may be approaching a potential buying opportunity. The Market Value to Realized Value (MVRV) ratio, which measures investor profit and loss, currently shows a 30-day MVRV of -15%. This indicates that investors are facing losses but could also suggest buying pressure. Historically, MVRV values between -7% and -17% have often preceded price rallies, marking an accumulation zone.

BANANA MVRV Ratio. Source: Santiment

Price Support and Resistance

BANANA has maintained its position above the critical support level of $55 in recent days. This level, previously tested as resistance, is now acting as a support. If buying pressure increases, BANANA might rebound and potentially target the psychological resistance level of $65.

BANANA Price Analysis. Source: TradingView

In the short term, BANANA is likely to consolidate below $70. However, if the $56 support level is breached, the price could drop to $47. Such a move could undermine the current bullish outlook, making recovery more challenging.

The reliance on historical MVRV patterns for predicting future rallies might not account for broader market conditions, potentially leading to overestimation of recovery prospects.