- BNB traded above the support line of its symmetrical triangle pattern
- BNB remains at risk of a decline as the funding rate was negative
The recent market rally has caused Binance Coin [BNB] to rebound sharply from the support line of its symmetrical triangle pattern.
This pattern occurs when the price of an asset reaches several lower highs and higher lows. It indicates that the price of the asset is coming under increasing pressure between buyers and sellers, with buyers pushing prices up to meet resistance and sellers pushing them down to find support.
When this happens, the asset in question is said to consolidate within a certain range.
Will it rally towards his opposition?
At the time of writing, BNB was valued at $583.84, following a 3% rise from the $566 support level. To assess whether the altcoin can rise to the upper trendline of the triangle and above, a good starting point is to consider market sentiment.
According to Santiments According to data, the weighted sentiment of the coin was 0.607 and at the time of writing, it was on an uptrend. The positive value of the measure suggested that the BNB market enjoyed positive sentiment from its participants.
BNB’s key momentum indicators also confirmed this bullish outlook. At the time of writing, the Money Flow Index (MFI) was 65.61 and rising, showing that market participants favored accumulating BNB over distributing their assets.
Similarly, the altcoin’s Chaikin Money Flow was in an uptrend and above the zero line at 0.07. This indicated a steady inflow of liquidity into the BNB market. If this indicator continues to rise, it would indicate an increase in demand for the cryptocurrency.
If sentiment remains bullish, buyers may push the price of BNB above the triangle resistance line. The price of the coin could rise to $596 and then to $643.
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BNB remains in danger
Conversely, if this bullish projection is invalidated and bearish pressure increases, BNB’s price could break below the triangle and trade around the $520 level.
The possibility of this happening is heightened by how large the altcoin’s negative funding rate has been in recent weeks.
In fact, according to Mint glassthis currency has recorded predominantly negative financing rates since April 23. On May 15, BNB’s financing rate had fallen to a multi-month low of 0.106%.
The last time the currency’s funding ratio was this low was in February.
When an asset’s funding ratio is negative, more traders hold short positions. This suggests that more traders expect the price of the asset to fall and buy the asset in anticipation of a price increase.