BNB remains stuck in this range: What’s next?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bullish rebounds encountered pullbacks in the mid-range price zone.
- Lack of bullish conviction in the futures market kept BNB stuck in a range.
Binance Coin’s [BNB] short-term bullish bias evaporated quickly, as the long-term bearish sentiment persisted. This has kept BNB’s price in perpetual sideways formation, with rallies on the lower timeframes serving as pullbacks on higher timeframes.
How much are 1,10,100 BNBs worth today?
Bullish rebound halted by sell orders at Value Area Low (VAL)
The Visible Range Volume Profile (VRVP) tool showed the key areas of interest for bulls and bears. The Point of Control (POC) lay at $242. Previously, prices ranged at this level with the highest volume between July and August before the sharp drop in mid-August.
The VAL acted as a mid-range resistance for the current price range. Despite the bullish bounce from $205 on 11 September and 25 September, buyers have failed to break above the VAL resistance.
This hinted at a block of selling orders at that price zone, preventing a bullish breakout. Buyers can wait for a move above the VAL and a retest of the same as support before buying. Profit levels would lie at the range high of $225.
In the meantime, the on-chart indicators highlighted neutral sentiment in the market. The RSI (Relative Strength Index) hovered at the 50-mark. Similarly, the OBV (On Balance Volume) flatlined.
On the other hand, the CMF (Chaikin Money Flow) dropped sharply from +0.13 to the zero level. This hinted at capital preservation moves by market participants.
Long-term bearish bias still evident in futures market
Read Binance Coin’s [BNB] Price Prediction 2023-24
Despite the short-term bullish push to the mid-range VAL, speculators displayed a tendency for profit-taking at every opportunity. The Open Interest (OI) fell swiftly by $15 million over the past 48 hours.
This was also reflected in the spot CVD dipping within the same period to highlight the waning demand for BNB.