Binance Coin bulls look to besiege the $250 level yet again
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The market structure was faintly bullish as Binance Coin was unable to claim $252 as a support.
- The bearish side of the argument was also strong as FUD continued to swirl around the exchange.
Binance Coin [BNB] continued to toil under a bearish trend on the higher timeframes. The daily chart showed that BNB bulls tried to impose themselves on the market in the past three weeks but were unsuccessful so far.
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BNB buyers can wait for a move back to the support zone from mid-June before loading their bags. The FUD around Binance can dissuade risk-averse investors, who can wait for a show of strength from the asset before buying. One such show would be a strong move past the $250 resistance, although the area up to $265 remained a bearish stronghold.
The inability to breach the $250 area despite repeated tries showed a short-term range for traders to focus on
On the 1-day chart, the market structure of BNB remained bearish. The recent lower high at $252.8 saw a few daily trading sessions poke above it, but no session close. This suggested that the bears have been strong so far. The OBV was also unable to break out past local resistance.
Therefore, the evidence at hand points more toward a range formation than the establishment of a bullish structure on the daily timeframe. The CMF agreed with this inference. Since early June the CMF was below -0.05, showing significant capital flow out of the market. This began to change in early July.
The RSI also climbed past the neutral 50 at the time of writing- but barely. The reading of 50.48 was not something that buyers would take much heart from. Neither was the price action of Binance Coin, at the time of writing.
Realistic or not, here’s BNB’s market cap in BTC’s terms
Does the rising mean coin age spell good times are ahead for Binance Coin?
The 90-day mean coin age began to trend higher in late May. This showed that there was a network-wide accumulation of BNB, and was a bullish sign. However, a breakout might not be imminent. The volatility has fallen after the mid-June price slump, but it did not approach the lows from April or May that precede a strong BNB move.
Hence, investors can watch out for a drop in volatility along with a move to the support zone at $230 before looking to buy. The deep negative values of the MVRV support the idea that the token is severely undervalued. Alternatively, a breakout past $250 could also spur bullish sentiment in the market.