Recent price movements in BNB have resulted in an upward trajectory surpassing significant EMAs, indicating a bullish trend in the medium term. Despite a sharp decline following its ATH near $723 in June, BNB managed to stay above the 200-day EMA.
As of the current moment, BNB is trading around $613.82, showing a decrease of 3.58% over the last 24 hours. This decline is attributed to the overall market experiencing selling pressure, particularly in BTC, which faced substantial losses recently.
Approaching Key Support Levels After Recent Rejection
During a recent rally led by Bitcoin, BNB exhibited notable gains by breaching its 200-day EMA and establishing higher highs and lows. This movement formed a rising wedge pattern on the daily chart, suggesting a potential reversal at higher levels.
Currently, the altcoin is hovering around critical support levels near $610, including the 50-day EMA, a horizontal support level, and the lower boundary of the rising wedge.
A successful bounce from this level may lead to a retest of the $660 resistance mark before potential consolidation. If overall market sentiment favors bulls, breaking above $660 could pave the way for revisiting the $700 range.
Alternatively, a drop below this support area—especially if BTC continues its downward trend—could increase bearish momentum with a key support level at the 200-day EMA around $559.
With the Relative Strength Index (RSI) around 50, current market sentiment is neutral. Buyers should monitor a possible dip below the equilibrium for insights into BNB’s short-term outlook.
Indications from Derivatives Data Reflect Mixed Sentiment
The 24-hour long/short ratio indicates balanced sentiment leaning slightly towards bears at 0.8727. Conversely, platforms like Binance and OKX show bullish long/short ratios at 3.948 and 3.02, respectively. The top traders’ long/short ratio on Binance also signals high optimism at 3.1649.
Notably, trading volume surged by 31.96% to $2.29 billion, while Options volume increased by 47%, illustrating heightened trader activity amidst recent market volatility. However, Futures Open Interest witnessed a marginal decline of 0.08%, suggesting cautiousness among traders regarding prolonged exposure in the current market scenario.
Traders are advised to exercise caution and closely observe overall market sentiment, particularly Bitcoin’s behavior, before committing to significant trading decisions.