- BNB bulls showed strength even as the market remained in overbought territory.
- A move to $550 appeared imminent, but prices might be attracted southward afterward.
Binance Coin [BNB] surpassed most expectations as it flew past the psychological $500 resistance. This breakout was unlike the move past the $400-$430 resistance zone.
That one took a few days of consolidation and a deep pullback before the bulls pulled it off.
This meant that while bulls would be justified in being euphoric, blindly going long on BNB might not be ideal.
Taking some profits and waiting for a pullback could be feasible, even though prices could easily reach the $610 resistance zone soon.
More gains, or due for a retracement, that is the question
Source: BNB/USDT on TradingView
“The price can go up or down” is annoyingly vague and offers zero help, even though it is undoubtedly true. At press time, the RSI on the 1-day chart of BNB was at 81.
It has been above 70 for a good chunk of the past month, when the price moved above the $340 resistance.
The fact that the bulls have not slowed down noticeably in this timeframe was an argument in favor of their immense strength.
The OBV has also steadily climbed higher to reinforce the idea of buying pressure.
Beyond $500, there is not much resistance except at the $555 and $610 levels. The market does not need to cool down before achieving these targets.
With that said, from a risk-to-reward perspective, it does not make sense for new entrants to buy BNB here to chase another 10% move higher. The risk of a retracement to the $415 or $450 support levels was present.
The liquidation levels showed longs were the dominant force
Source: Hyblock
The cumulative liquidation levels delta stood at $715 million at press time. Long liquidations far outnumber the shorts, suggesting that a move southward was more likely.
However, there was estimated to be a $8.78 million short liquidation level at $547.
How much are 1,10,100 BNBs worth today?
It was also estimated to be low leverage, with $541 also having $8.78 million in short liquidations.
Therefore, it is likely that prices would sweep these relatively large liquidity pockets before falling lower to take out the long positions.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
