Journalist
Posted:
- Binance Coin could continue its uptrend and move towards the $380-$400 zone.
- Coinalyze data shows that selling pressure has been strong in recent days.
Binance coin [BNB] had a strong bullish bias on the one-day price chart. It broke past two-month highs at $325 and climbed as high as $366.
This meant a gain of almost 20% within two weeks.
An AMBCrypto report earlier this month noted that the Binance Smart Chain performed consistently in 2024 in terms of unique addresses. It was also reported that there was strong transaction volume.
Combined with Bitcoin [BTC] rally from $42.5k, Binance Coin showed strong bullish momentum.
The $350 region is an important zone for bulls to defend
Source: BNB/USDT on TradingView
The Fibonacci retracement and extension levels (light yellow) showed the lows of the range coinciding with the 61.8% retracement level.
BNB buyers have staunchly defended this level over the past two months before hitting the recent breakout.
The market structure has been bullish since February 8, when the price rose above the recent low of $313.1. The RSI also signaled solid bullish momentum with a reading of 70.
At the same time, the OBV showed an upward trend, underlining the strength of the purchasing volume. All told, this meant that the exchange token could yield more profits.
The $350-$380 zone was an area of interest on a higher time frame. Therefore, it may take some time for the bulls to break through this region and drive prices higher.
The short-term data suggested that selling pressure is on the way
Source: Coinalyse
The technical indicators on the 1-day chart pointed to bullish pressure. However, Coinalyze’s data showed that Futures market participants were skeptical of further gains in the short term.
The Open Interest has slowly fallen over the past two days, alongside the price. The financing rate was also negative, showing that short sellers were in the majority.
Realistic or not, here is the market cap of BNB in terms of BTC
The spot CVD saw a notable downward move over the past three days, reinforcing expectations of a price decline in the coming days.
Such a dip could cause Binance Coin to retest the $340 level that had served as resistance in December 2023.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.