Over the past four months, Binance Coin (BNB) has remained within the $460-$600 range, indicating its struggle amidst prevailing market challenges. The latest price movements have seen a reversal from the $607 resistance level, leading to a minor downturn.
Nonetheless, the bulls surfaced at the $539 support level, coinciding with a modest recovery in Bitcoin (BTC).
Currently, Binance Coin is trading around $576, marking a 2.5% uptick in the last 24 hours.
Is BNB Ready for a New Rally?
BNB’s daily chart shows a breakthrough above key EMAs, providing the bulls with a temporary advantage. Following the bounce from the $539 support, BNB surpassed its 20, 50, and 200-day EMAs, signifying renewed buying interest.
If this positive momentum persists, Binance Coin is likely to test the $607 resistance level and potentially breach it in the near future. A successful close above $607 could usher BNB into a fresh phase of price discovery, with potential targets at $630 and beyond.
However, a rejection at the $607 level could halt the current bullish trend and initiate a consolidation phase within the $539-$607 range.
The RSI is currently at 54.73, hinting at a mild bullish inclination. Surpassing the 60 threshold could strengthen buying pressure and hasten the bullish breakout.
Insights from Derivatives Data
Derivatives data align with the prevailing bullish sentiment. BNB’s 24-hour long/short ratio stands at 0.9623, indicating a balanced outlook.
Conversely, on Binance and OKX, the long/short ratios skew in favor of the bulls, with readings of 1.5907 and 1.73, respectively. This suggests optimism among traders, particularly for short-term profits.
However, there has been a slight 4.11% decrease in BNB options’ open interest, implying that some traders are exercising caution during the ongoing consolidation phase.
Notably, trading volume surged by 111.22% to reach $546.86 million. This uptick in volume, coupled with the 24-hour gains, paints a relatively optimistic picture for the coin.
Recent data on liquidations displayed a mixed sentiment, with several short traders getting liquidated over the last 12 hours, indicating that the bullish momentum might have additional strength.
Given BNB’s strong correlation with Bitcoin, traders should closely monitor BTC’s movements as they could influence BNB’s trajectory. An upward breakout in BTC could set the tone for BNB’s direction.
In conclusion, a decisive move above or below the $607 and $539 levels will provide clarity on BNB’s future trend.