BNB consolidates losses below $220 – what now?
BNB breached the $220 psychological level but consolidated narrowly below it.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- BNB saw three daily sessions close below $220 since 17 August.
- Indecision amongst players, but funding rates were negative.
Market indecision amongst Binance Coin [BNB] traders set the altcoin into range trading over the weekend (19-20 August). After dropping below $220 on 17 August, BNB fluctuated between $213 – $220 over the weekend.
Read Binance Coin’s [BNB] Price Prediction 2023-24
Although a clear market direction could be forged from Monday (21 August), a range-bound extension could be on the cards if the market players’ indecision persists.
Meanwhile, Bitcoin [BTC] shed over $3000, about 10%, in a week. It dripped from $29k on 14 August (Monday) but steadied near $26k at the time of writing.
Is range extension on the cards?
BNB’s extended drop on Friday (17 August) cleared a crucial psychological level of $220. The level stopped the June dump and was a bulls’ rescue during the December 2022 slump. But it failed to hold up the recent sell pressure.
At the time of publication, the Relative Strength Index (RSI) was flat in the oversold territory. It demonstrated the recent intense selling pressure with no signs of price reversal.
Similarly, the On Balance Volume (OBV) dipped and moved sideways – Demand declined and stagnated. These readings reinforce a potential range-bound extension between $213 – $220 in the next few days.
However, a bearish breakout could expose BNB to grace or crack the $200 mark. Alternatively, a bullish breakout must mount above $224 to tip bulls to target $230.
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BNB’s negative funding rates persist
BNB’s funding rates have been worryingly negative for a while now. Given the $220 psychological support breach, the negative funding rates reinforce a bearish bias in the derivatives market
Notably, the CVD (Cumulative Volume Delta) declined between 15-17 August, meaning sellers had more market control over the period. But the flat movement from 18 August indicates no players had absolute leverage. It reinforces the neutral and range-bound extension thesis.
