- A break above $551.27 could lead to further gains, while a drop below $520.43 could signal more downside potential
- Long/short ratio of top traders on Binance and OKX revealed some hopes for buyers
Since touching its ATH in early June, Binance Coin (BNB) has gradually regained bearish momentum. It has fallen below key resistance levels (previous support) as it mirrored the broader market’s trend.
Over the past few days, BNB saw an expected decline from its chart pattern, pushing its price below key EMAs. At press time, BNB was trading at around $534, down by nearly 2% over the past 24 hours.
BNB could see a revival in the near term
Source: TradingView, BNB/USDT
The latest daily chart showed BNB struggling to break above critical resistance levels. The price has been battling within a narrow range, confined by the resistance at $551.27 (50 EMA) and support at $520.43 (200 EMA).
A recent bullish breakout above the 20-day EMA (currently at $548) was met with strong resistance, and the price has since retraced.
The chart’s green and red projected paths indicated two potential scenarios – A continuation of the current uptrend could see BNB testing the $591.91 resistance. On the other hand, a failure to hold above $541.00 could result in a retest of lower support levels around $490.08 and $464.14.
The Relative Strength Index (RSI), at press time, was at 47.79, pointing to a rather neutral market with neither bulls nor bears in control. However, any close above the 50-mark can confirm an ease in selling pressure.
Here, it’s worth noting that the altcoin recently broke above its long-term trendline resistance. So, a rebound from the 200 EMA seemed quite likely.
Derivatives market sentiment
Source: Coinglass
The 24-hour long/short ratio was 0.9109, confirming a slight preference for short positions. However, the long/short ratio on exchanges like OKX & Binance seemed more favorable towards longs—With ratios of 1.8703 and 1.91, respectively.
Despite the overall bullish sentiment among top traders, the Open Interest decreased by 3.26% to $496.95 million. This decline suggested that some traders are closing their positions, possibly anticipating greater volatility. Finally, the volume climbed by 50.70% to $978.57 million, indicating more trading activity.
As always, keeping an eye on Bitcoin’s movements will be crucial, especially given BNB’s high correlation with BTC.
