BNB about to break out over $250? Here’s the counter argument

Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.

• Price action showed signs of bullishness, but $265 was a critical resistance.
• The presence of buying pressure over the past month may not be enough to fuel a rally.

Binance coin [BNB] has been on the road to recovery since late June. Buyers were able to defend the $230 level and then forced BNB to form higher lows afterwards. Still, any attempt beyond $250 was rejected.

How much are 1.10, 100 BNBs worth today?

This showed that the bulls were not yet strong enough to break the resistance. It also highlighted that bears weakened their hold on $250 after every attempt by the buyers. Can they force an outbreak soon?

The price structure is bullish, but that does not justify buying the token

Source: BNB/USDT on TradingView

Swing traders and positional traders have their focus on the daily or higher time frame charts. For such traders and even long-term investors, Binance Coin does not yet offer an attractive buying opportunity.

However, the strong losses in June left the long-term bias bearish. But the move past a lower high at $252.8 on June 22, though brief, emphasized bullish intent. In addition, the price has since formed a series of higher lows, highlighted by rising trendline support.

The contraction in the price action was accompanied by rising OBV, which showed steady buying pressure. The RSI hovered around the neutral 50 for most of July, showing a lack of strong momentum in either direction.

The average coin age uptrend showed that BNB was accumulated on-chain

Source: Sanitation

As an exchange token, BNB offers discounts on trading fees on the Binance exchange. This means that users of the platform have an incentive to hold the token, which may go some way to explaining the token’s rising average coin age.

It was also a sign that buyers might pile it up, waiting for a bullish breakout. The MVRV ratio showed a severely undervalued asset, reinforcing the bullish trend.

Source: Mint glass

Realistic or not, here is the BNB market cap in terms of BTC

Coinglass data showed that the Open Interest behind the token ticked higher in July. Although prices did not show a strong upward trend, the rising OI indicated a bullish sentiment in the market.

The $252 and $265 levels are places where a bearish reversal could take place. But if the bulls can gather their strength and get past $265, a retest of the same level would present a long-term buying opportunity.