Is BNB settling into another range-bound movement?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- BNB could begin another range-bound movement, as bears held tightly to resistance level.
- Speculators maintained a cautious approach while waiting for a clear direction in the short term.
Bulls have been able to bounce back gently from the $205 support after the bearish breakout took Binance Coin [BNB] below the range low of $225 on 17 August. However, this price bounce has stalled just below the new resistance of $225.
Read Binance Coin’s [BNB] Price Prediction 2023-24
With wavering market conditions continuing to exist, buyers cannot afford another range-bound movement, if BNB is to recover the massive Q2 losses. Meanwhile, Bitcoin [BTC] dropped by over $2,000 within 24 hours to extend its oscillating price action.
BNB could be caught up in another price range
The massive losses experienced by BNB at the start of June found some respite at the $220 – $225 price level. However, while bulls defended the level staunchly, the insufficiency of the buying pressure kept BNB in a compact range between $225 – $254 over a two-month period.
The same pattern looks to repeat itself after bears successfully flipped the $225 level to resistance. Bulls recovered from the nearby support of $205, but bears have refused to give back the resistance level quickly.
Looking into the chart, indicators showed a preference for a more bullish recovery in the short term. The Chaikin Money Flow (CMF) surged to +0.20, hinting at strong capital inflows. The Moving Average Convergence Divergence (MACD) also posted a bullish crossover, while the Relative Strength Index (RSI) moved to the edge of the 50 mark.
For bulls to experience sustained momentum, the $225 level needs to be reclaimed over the coming days. This will give a solid foundation for a bullish push for the $255 – $260 price level. A price rejection at the $225 level could see more sellers look to push BNB below the $200 price level.
Market indecision among speculators
Realistic or not, here’s BNB’s market cap in BTC’s terms
The exchange long/short ratio highlighted the hesitancy by market speculators to commit to new contract positions on BNB. Data from Coinglass showed a marginal difference between longs (50.32%) and shorts (49.68%).
With just $500k separating long and short positions, a cautious approach is advised in the interim to avoid being caught out by swift buying or selling price action.