Connect with us
Active Currencies 14899
Market Cap $2,497,488,105,205.70
Bitcoin Share 51.13%
24h Market Cap Change $1.84

BNB hovers above $300 amidst rising bearish sentiment

2min Read

A lower timeframe range formation between $300 and $315 materialized, but far more important was the lack of strength from bulls at a critical demand zone

Binance Coin [BNB] hovers above the $300 mark amidst rising bearish sentiment

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • The $300 level was crucial, but bulls were on the verge of losing this support.
  • The Fibonacci extension levels gave an idea of where the prices could be headed next.

Binance Coin [BNB] has been in a downtrend since the latter half of April. Following the rejection from $350, the sellers have assumed the driving seat and the bearish trend of Bitcoin [BTC] has solidified in recent weeks. The final days of April saw high volatility, but the price action has settled since then.


Realistic or not, here’s BNB’s market cap in BTC’s terms


At the time of writing, Binance Coin’s prices were perched precariously above the $300 support level. It was a psychological as well as technical level of significance. However, the short-term momentum was in favor of the sellers.

The bullish order block was defended so far

Binance Coin [BNB] hovers above the $300 mark amidst rising bearish sentiment

Source: BNB/USDT on TradingView

Based on the move down from $350 to $301.4, a set of Fibonacci retracement levels was drawn. It showed the 23.6% retracement level at $312.9. Interestingly, Binance Coin has oscillated between $315 and $300 since 9 May, forming a short-term range.

This range formation came after a bullish order block on the 6-hour chart was tested. In a previous report, this zone was highlighted as critical for the bulls, but they have not yet managed to push prices higher. On the contrary, the sellers continued to dominate the market.

The outlook for Binance Coin was more bearish at press time. The lower timeframes showed a rise in selling pressure. The LTF support at $309 was also flipped to resistance. The RSI remained below neutral 50, and a move south would likely take BNB to $290 and $271.4. Such a move could be initiated if Bitcoin saw a wave of selling next week.


How much are 1,10,100 BNBs worth today?


A rise in Open Interest indicated bears had sway

Binance Coin [BNB] hovers above the $300 mark amidst rising bearish sentiment

Source: Coinalyze

Over the past few hours, the Open Interest rose as Binance Coin prices continued to slump. This showed active short sellers in the market and highlighted high conviction from the bears. This signaled strong bearish sentiment.

This finding was reinforced by the findings from the spot CVD chart. This indicator has been in a downtrend since last weekend and intensified over the past two days. Therefore, the selling volume was dominant and further losses were likely for BNB.

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.