Breaking free from its extended trendline barrier, the value of Binance Coin (BNB) surged to an all-time high (ATH) of $794 on December 4th. This upward movement was primarily driven by the prevailing positive sentiment in the cryptocurrency market, particularly the recent surge in Bitcoin (BTC).
Currently, BNB is being traded at $715.86, stabilizing around crucial support levels.
BNB Stabilizes at Significant Support Level
Examining BNB’s recent price action on the daily chart reveals a robust bullish stance, with the coin consistently staying above its 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs). Nonetheless, following its attainment of the new ATH, the price has been consolidating over the past few days.
If the price decisively drops below the $712 mark, it could potentially lead to a retreat towards the 50-day EMA at $663, which holds as a formidable dynamic support level.
The Relative Strength Index (RSI) currently stands at 57, comfortably below the overbought territory, indicating scope for further gains, provided general market sentiment leans towards the bullish side.
The $712 support level now plays a crucial role as a short-term support level. Upholding this level could pave the way for a reattempt to break through the $750–$760 resistance range. A successful breach of this barrier might propel BNB into a phase of price discovery.
Derivatives Information Indicates Optimistic Sentiment
Statistics from BNB’s derivatives market demonstrate a rise in trader activity. Trading volume surged by 70.85% to $1.7 billion, reflecting heightened engagement following the recent uptrend. Additionally, Open Interest climbed by 2.89% to $950.9 million, suggesting the influx of new market positions. Notably, Options Open Interest surged by 62.49%.
Interestingly, the long/short ratio within the last 24 hours stands at 0.8882, indicating a slightly cautious sentiment overall. However, traders on Binance appear notably bullish, as evidenced by their long/short ratio of 3.3085. Furthermore, top traders exhibit a significant long bias, with a ratio of approximately 2.4.
BNB’s consolidation around crucial support levels hints at a potential rally for the bulls. Keeping an eye on broader market sentiment, particularly Bitcoin’s trajectory, will be pivotal for traders. Assessing a sustained uptrend may involve monitoring rebounds from near-term EMAs.
Conversely, a plunge below $712 could invalidate the bullish scenario, prompting a reevaluation around the 50-day EMA.
Traders are advised to vigilantly track Bitcoin’s momentum and BNB’s price behavior near important levels to inform their trading strategies.