Connect with us
Active Currencies 14281
Market Cap $2,515,738,772,066.90
Bitcoin Share 51.94%
24h Market Cap Change $0.36

All the ways in which BNB’s face-off with this resistance level will unfold

2min Read

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Higher timeframe downtrend
  • BNB heads into a stiff resistance zone

Binance Coin is the 4th largest cryptocurrency by market capitalization. The exchange token has seen sideways movement on the price charts for nearly a month now as it formed a range between $260 and $300. At press time, the price approached the psychological $300-resistance once more.


Here’s AMBCrypto’s Price Prediction for Binance Coin [BNB] for 2022-23


Despite the bullish momentum of the past few days, however, Binance Coin could see a strong rejection, especially if Bitcoin also faces difficulty in climbing above $20.5k.

Binance Coin runs into seller territory

Binance Coin at a resistance zone, here is what could unfold

Source: TradingView

The 3-day chart (not shown here) had a bearish market structure. The daily structure was also bearish for BNB, although its move past $280 carried some lower timeframe bullish impetus. Overall, the confluence of the bearish order block (marked in red) and the psychological $300-resistance level meant that BNB could face rejection and a move lower on the price charts.

Binance Coin found steady demand at the $261-level and also faced strong sellers near the $300-mark. Since September, these two areas have been quite important. At the time of writing, the RSI had climbed past the 60-mark to show strong bullish momentum.

And yet, the OBV did not share a similar spike. This, because buying volume has been low. In fact, the OBV has been on a downtrend from August to signify a lack of demand.

Taken together, the OBV and the resistance zone suggested that BNB could retrace all its gains since mid-September.

Lowered social dominance, but will it reverse going into October?

Binance Coin at a resistance zone, here is what could unfold

Source: Santiment

In mid-August, the Social Dominance metric of Binance Coin touched a six-month high at 17.1%. Since then, the dominance metric has posted lower highs to highlight the declining number of mentions the coin has seen. This could take a turn as a sharp spike north was registered a couple of days ago.

The funding rate has been slightly negative since mid-September. The previous week saw a nearly flat funding rate as the Futures market shifted from bearish towards neutral. As far as a more short-term outlook is concerned, the bulls have the majority. Coinglass data revealed that the past 24 hours have had a slight skew toward longs rather than shorts.

A rejection near the $300-mark could see BNB dip to $260 and possibly as far as $240. $277 can also act as interim support. This bearish notion would be invalidated if a daily session can close above $305 for Binance Coin.

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.