Binance Coin [BNB]: Can bulls pull off a rally from this support level
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
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- Bulls looked to rally from the $303 support level.
- BNB’s Market Value to Realized Value stood at -0.51% at press time.
Bitcoin’s [BTC] dip under the $27k level propelled further selling pressure across the crypto market. The support level at $318 failed to hold for Binance Coin [BNB], with sellers driving the price to the next support level at $303.
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The $303 support level served as a rallying point for bulls on 4 April. It remains to be seen if the level can hold again and act as a springboard for a bullish reversal.
BNB bounces off key support level
BNB has been on a downward trend on the four-hour timeframe since 1 May, after prices retested the bearish order block between $338 and $345. This dip pushed prices below the $318 support level before the selling pressure cooled off at the $303 support level.
Price action around the $303 support level suggested the possibility of a bullish reversal. The bearish four-hour candle at the support level closed just slightly above it. This was immediately followed by two bullish candles in a row, with bulls looking to defend the support level.
The RSI responded by climbing out of the oversold zone and it stood at 35.2, as of press time. The OBV also recorded a slight uptick to signal more volume for BNB.
An increase in volume and buying pressure will see bulls target the $318 resistance in the short term. An ambitious target will be the bearish order block zone just below the $350 resistance level. Alternatively, sellers could continue the downward slide if the price closes below the $303 support level.
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Market speculators remained uncertain
Data from Santiment showed that the Market Value to Realized Value (MVRV) for BNB stood at -0.51%, as of the time of writing. This signaled that BNB might be close to the bottom of the current downward trend, offering potential short-term buying opportunities.
However, funding rates remained negative. This hinted that BNB might still register some downside from its current level before an upward trend.