- BNB is correcting 10% below its all-time high with a slightly bearish RSI of 49.91.
- The rising MACD and high social dominance indicate a possible bullish recovery.
After hitting an all-time high last week, it appears that Binance Coin [BNB] Bulls take a step back, immediately sending the token into a somewhat expected correction.
At the time of writing, prices were more than 12% below all-time highs. How could BNB end the week?
Looking at the 5-day chart of BNB, we see that the RSI is currently just below the neutral 50 level, around 49.91, indicating balanced but somewhat bearish momentum.
However, the MACD line is above the signal line and above zero, indicating that bullish momentum is starting to build.
Source: TradingView
Will BNB recover quickly?
Current trading was close to $644, well below the recent high, indicating that the correction is in full swing. However, the exponential moving average also shows the price underneath, reinforcing the bearish trend.
Notably, there was a significant spike in BNB social volume, coinciding with the price drop.
During periods of high social volume, BNB’s dominance also shows spikes, indicating that it is still a very popular topic of conversation in crypto communities and will remain so for the foreseeable future.
Source: Santiment
Trading volume for BNB derivatives has increased by 157.99%, as it has done steadily over the past ten days.
The Long/Short ratio across platforms shows a dominance of long positions, especially with ratios above 1.5 on OKX and top traders on Binance.
Source: Coinglass
This preference for long positions may reflect a generally bullish sentiment among active traders.
Given the current technical situation and market sentiment, BNB may continue to experience some degree of volatility throughout the week as it tries to find a new equilibrium after the correction.
Realistic or not, here is BNB’s market cap in BTC terms
If momentum continues and the broader market remains relatively bullish, the bulls are likely to successfully push past the all-time high of $717 by late Friday.
All in all, BNB will have quite a volatile week.