BNB: Can bulls rally, or will bears extend control?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- BNB extended its sideways structure on the lower timeframes.
- On-chain metrics presented the possibility of a short-term price pump.
Binance Coin’s [BNB] bearish market structure has subdued bullish attempts to reverse the sustained price dip. Despite a price bounce from the $205 support level, bulls haven’t been able to break above the $220-$225 resistance level.
Realistic or not, here’s BNB’s market cap in BTC’s terms
This has resulted in BNB trading sideways for over three weeks after the last price rejection at the resistance level on 31 August.
Bulls unable to surmount key price hurdle
The Relative Strength Index (RSI) highlighted the oscillating momentum being experienced by BNB. On the 12-hour chart, the indicator regularly flipped between buying and selling pressure, as BNB traded at a compact price level.
With bulls and bears holding onto their support ($205) and resistance ($220-$225) levels respectively, BNB could continue to experience ranging price action in the short term.
Based on the On Balance Volume’s (OBV) muted movement, two scenarios could play out over the coming days. The first scenario could see bulls try to catch short sellers with a break above $220 and a further push to $240.
On the other hand, another bearish rejection could see sellers attempt a third retest of the $205 support level with the possibility of a break to the $188 support level (weekly timeframe).
A short-term comeback might be in the works
The Open Interest data from Coinalyze revealed muted interest in new futures positions over the past day. This coincided with a small bump in price for BNB from $215 to $217 over the same period.
Read Binance Coin’s [BNB] Price Prediction 2023-24
It hinted that speculators could wait for a price break above a critical level before pushing for more gains.
Similarly, buyers were encouraged by the spot CVD rising since 16 September. This reflected a bullish bias returning to BNB, with a good tendency for decent buying gains in the short term.