Recent price action of BNB has seen a notable uptrend, surpassing significant EMAs to reinforce a bullish outlook in the medium term. Despite experiencing a sharp decline after hitting its all-time high (ATH) near $723 in June, BNB managed to hold above the 200-day EMA.
As of the time of writing, BNB was trading around $613.82, showing a decrease of 3.58% over the last 24 hours. This decrease came amid a broader market sell-off, particularly impacting BTC, which registered substantial double-digit losses in recent days.
BNB Testing Crucial Support Levels Following Recent Resistance
During a recent bullish run led by Bitcoin, BNB made significant gains by breaking above its 200-day EMA, forming higher highs and higher lows. This price movement led to the formation of a rising wedge pattern on the daily chart, indicating a potential trend reversal at higher levels.
Currently, the altcoin is positioned at a critical support juncture around $610. This support area includes the 50-day EMA, a horizontal support level, and the lower boundary of the rising wedge pattern.
A successful bounce from this level could potentially propel BNB to retest the $660 resistance area before a likely consolidation phase. Should market sentiment favor the bulls, a break above $660 might pave the way for a retest of the $700 threshold.
Conversely, a breakdown below this support zone—especially if BTC maintains its downward path—could accelerate bearish momentum. In such a scenario, traders should keep a close eye on the significant support level at the 200-day EMA around $559.
Currently, the Relative Strength Index (RSI) hovers around 50, signaling a neutral market stance. To assess BNB’s short-term potential, buyers should watch for a potential dip below the equilibrium on the RSI.
Varied Sentiment from Derivatives Data
The 24-hour long/short ratio stands at 0.8727, indicating a balanced sentiment with a slight leaning towards bears. However, on major platforms such as Binance and OKX, the long/short ratios show bullish sentiment at 3.948 and 3.02, respectively. The top traders’ long/short ratio on Binance also highlights a high level of optimism at 3.1649.
Trading volume has surged by 31.96%, reaching $2.29 billion, while Options volume has grown by 47%, reflecting increased trader participation amid recent market volatility. Nonetheless, Futures Open Interest has experienced a minor decline of 0.08%, suggesting some cautiousness among traders regarding prolonged exposure in the current market environment.
Traders are advised to exercise caution and closely monitor broader market sentiment, especially in relation to Bitcoin’s price movements, before making significant trading decisions.