- BNB faced resistance at the one-week bearish order block at $300.
- A retracement toward $260 was possible, but it is unclear if the pullback will be that deep.
Binance Coin [BNB] broke out past a significant resistance zone on the 26th of December. It surged from $266 to $303.2 within a day, a 14.85% move. At press time, BNB prices were pushed below the $300 mark.
AMBCrypto reported that the Binance Smart Chain [BSC] experienced a rug pull on the same day. The token targeted was OmniCat [OMNI], but its ramifications could extend beyond the project.
BNB maintains a strong bullish outlook
Source: BNB/USDT on TradingView
Despite the news of the rug pull, BNB showed strong bullish conviction from market participants. Its market structure on the one-day chart was firmly bullish. Moreover, the $266-$276 resistance zone was also breached.
This area has had significance since August 2022, marking it as an HTF resistance. The rejection from $305 on the 16th of December was also from a significant resistance zone. The $300 level is also a psychological round-number resistance.
The $300-$315 zone was a firm resistance zone in the one-week timeframe. Above it, the $350-$355 is also extremely strong as a supply zone. The $320-$350 area has also been hotly contested in the past.
At press time, the RSI was at 73.4 to reflect firm upward momentum. The OBV has trended higher in December to highlight intense buying pressure.
Despite this evidence, a brief pullback is possible. If that happens, the $280 level and the $260-$272 regions are expected to serve as support.
Source: Hyblock
AMBCrypto’s technical analysis of Hyblock’s liquidation heatmap showed the levels that traders can keep a close eye on. Notably, the $260 zone is important on the liquidation heatmap.
To the north, the $298.8-$308 zone also has a fair amount of liquidation levels.
Read Binance Coin’s [BNB] Price Prediction 2023-24
Apart from $260, the $270 level as well as the $277-$282 area could also act as a demand zone should BNB prices sink lower.
This is where a bounce is expected, but Bitcoin [BTC] likely needs to stay above the $42k support for BNB to continue its ascent.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
