BNB bulls defend the range low again: Can buyers push on?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- BNB registered a 4% bounce off the range low.
- However, market speculators displayed a lack of conviction in the bullish rally.
The crypto market flashed green, as Bitcoin [BTC] rallied above $27k. This spurred a bullish move for Binance Coin [BNB], with the native token of the BNB Chain registering a 4% bounce off the range-low of $205.
Read Binance Coin’s [BNB] Price Prediction 2023-24
Despite the marginal gains, BNB still traded under $220, extending its range formation.
Can buyers mount a sustained bullish rally?
The $205 support level has been decisive for bulls over a two-month period. The buying strength at the level has limited the selling pressure and kept BNB in a price range over the period.
Furthermore, buyers have registered decent price rebounds from the level. However, the $225 resistance level has always stood in the way of more gains for buyers.
With the bullish sentiment in the market, BNB buyers could take advantage to push for a sustained bullish run. A price consolidation above $220 will provide the platform needed to flip the $225 resistance level with further upside at $235 to $240.
On the other hand, another rejection will keep the current range formation and extend BNB’s bearish market structure.
Buyers need to exercise caution
Data from Coinalyze showed a lack of confidence in the bullish rebound by participants in the derivatives market. Despite the price bounce, the Open Interest (OI) declined by $4 million over the past 24 hours.
Realistic or not, here’s BNB’s market cap in BTC’s terms
Similarly, the Funding Rate flipped negative over the past 48 hours. This suggested that short-position traders were dominant and willing to pay long traders. This implied that many Futures traders were bearish at press time.
Yet, an extension of BTC’s bullish rally could aid BNB buyers in the short term.