Binance Coin [BNB] bulls are aiming for a push towards the $604 range high following a drop to $471 in early September. Buyers have demonstrated strength in defending the demand zone around the recent lows.
Technical indicators present a mixed outlook, hinting at potential gains in the days ahead. However, the consistent buying pressure needed for a breakthrough is not yet confirmed.
Bullish grip on the psychological $550 level
On lower timeframes like the 4-hour chart, market structure favors buyers. The range established had its lows around $464, which were nearly revisited earlier in September. Subsequent price recovery has pushed BNB above the mid-range resistance at $535.
Based on the daily chart, the MACD indicator has formed a bullish crossover, indicating increasing upward momentum. The MACD is also on the brink of crossing above the neutral zero line, signaling a probable shift in the trend.
Despite these positive signs, the On-Balance Volume (OBV) has not surpassed previous local highs, and trading volume appears subdued. As a result, the likelihood of a strong BNB rally remains low, though a slow climb towards $604, the range high, is plausible.
Futures indicate transient bullish sentiment
Since September 12th, the funding rate has mostly been positive. Open Interest witnessed an uptick on the 11th and 12th but has since plateaued. Meanwhile, BNB’s price has fluctuated between the $540 and $560 range.
This shift implies that the bullish sentiment observed last week has waned, giving rise to uncertainty. A recent decrease in Open Interest suggests a bearish short-term outlook. Conversely, the spot Cumulative Volume Delta (CVD) has notably trended upwards, indicating robust demand.
While signals may conflict, the elevated CVD figure and reclaiming of the mid-range resistance serve as positive indications for a potential move towards the range highs.
Disclaimer: The points mentioned above are not intended as financial, investment, trading, or any specific advice, solely reflecting the author’s personal views.