What to expect as BNB nears $300-level
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
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- BNB retested range low of $305.
- Longs discouraged on a 4-hour timeframe; OI wavered around $320 million.
Bitcoin [BTC] sharply dropped and breached the key $26.6k support amidst FOMC minutes on 24 May. Binance Coin [BNB] suffered more bearish pressure after the BTC move, easing near $300 as of press time.
How much is 1,10,100 BNBs worth today?
Nevertheless, the ongoing U.S. debt talks and massive BTC options expiry on 26 May could cause more volatility towards the weekend. As such, considerable choppiness could be likely in either direction.
Will sellers give room?
BTC’s weakening reinforces a bearish short-term outlook. RSI retreated to lower ranges in the 4-hour chart, underscoring the elevated selling pressure. Similarly, the On Balance Volume dipped, denoting a drop in demand.
Ergo, short-sellers could extend gains beyond the range low of $304. If the range low cracks, the next support level is the $300 psychological level. Any move below $300 could expose BNB to more aggressive selling.
Alternatively, if BTC doesn’t drop to $25k and reclaims $26.6k, bulls could defend the range low of $304. Such a move could see BNB rally to the mid-range of $309.7 or the range high of $315.5.
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Coinglass’s liquidation data in the past 4-hours reinforces the short-term bearish outlook. About $139k worth of long positions were wrecked as a mere $115 shorts suffered. It means sellers could extend gains beyond $304.
Meanwhile, BNB’s futures open interest rates remained below $320 million since mid-May after BNB dropped below $320 price. The low OI could undermine a strong recovery unless BTC reclaims the previous support of $26.6k.