Over the past week, Binance Coin [BNB] has demonstrated steady progress, with a slight uptick of 2.68%. In the latest 24-hour period, it has increased by 1.14% as it entered the supply area.
Despite the optimistic outlook among traders, BNB is up against significant hurdles that could impede its upward momentum.
Challenges Ahead for BNB
According to CryptoCrypto’s analysis, BNB has entered a notable fair value gap (FVG) supply zone pinpointed on the 4-hour chart, ranging from $580 to $590. This zone is expected to act as a barrier to further price hikes.
Typically, an FVG supply zone triggers downward pressure, potentially leading to losses for investors.
During the last stint within this zone, BNB faced a 6.02% downturn over two days, hitting a low of $551.50.
In case of a downwards shift, BNB could drop to around $558.90. Conversely, a surge in bullish momentum may propel it to roughly $618.60.
Market activity, as per CryptoCrypto’s report, currently favors a possible uptrend.
Short Traders Experience Substantial Losses
The market is witnessing a notable disparity in liquidations, with short traders absorbing most of the losses.
At present, short traders have faced liquidations totaling $463.05k, in contrast to long liquidations amounting to $94.89k.
This imbalance indicates a bullish market sentiment, where a greater number of short positions are being closed, hinting at an upward price trajectory for BNB.
Moreover, the positive Funding Rate remains consistent. A positive Funding Rate signifies that long traders are compensating short traders, denoting robust buying interest and hinting at anticipation of further price appreciation in the market.
The Aroon Indicator further supports this bullish stance. Currently, the Aroon Up line, indicating the time since the last peak in price, surpasses the Aroon Down line, registering readings of 85.71% against 50.00%.
This denotes an ongoing bullish trend.
Should this bullish momentum persist, BNB is poised to climb higher, with anticipations of continued upward movements in the upcoming market sessions.