Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- BNB price action was firmly in favor of the bulls.
- A pullback to $240 or lower appeared likely, but thereafter the price could rally to push above the $256 resistance.
Binance Coin [BNB] broke out of a forty-day range on the 23rd of October, the same day when Bitcoin [BTC] surged past the $30k resistance.
The BNB Smart Chain security report for Q3 was out. AMBCrypto’s analysis showed that the loss of funds through the BNB network has reduced considerably in comparison to figures from 2022.
The price action of BNB has been firmly bullish in the past ten days. However, the psychological resistance at $250 was close to a technical resistance level from June and July at $256. This round number resistance saw BNB bears come out on top in the recent trading hours.
BNB could retrace to $240 or lower but indicators remain positive
Source: BNB/USDT on TradingView
Marked in orange was a range that BNB traded within from mid-September to late October. This range reached from $204 to $221. On 23 October, BNB breached the highs of this range.
What’s more, the prices retested the $220 level as support on the 26th of October before continuing its rally.
The RSI was at 65 and signaled strong bullish momentum and an uptrend in progress. The price action on the one-day chart also had a bullish structure.
The On-Balance Volume trended higher in the past two weeks to show increased buying volume. The Chaikin Money Flow was also well above +0.05 to highlight notable capital inflow into the market. Together these factors reinforced the bullish expectations for BNB.
Yet, the 5% drop in recent hours meant BNB could see a pullback. The $231-$238 region was a support zone. The Fibonacci retracement levels (pale yellow) also highlighted $233.3 and $227.1 as significant support levels.
The social sentiment was bullish and rising demand could see BNB prices rally higher
Source: Santiment
Santiment data showed that the weighted sentiment was positive. It was the highest that BNB’s weighted sentiment has touched in the past three months.
Additionally, BNB’s social dominance has also crept higher from the mid-October lows.
Source: Coinalyze
The Open Interest (OI) chart above saw a sharp jump higher on the 4th of November, when BNB was trading at $229. The OI and price climbed higher till the 6th of November, and since then both have taken a dip.
This showed that short-term speculators had bullish convictions but lost this confidence after the token faced resistance around $255. It also suggested that bullish pressure could take a minor hit in the coming days.
Read Binance Coin’s [BNB] Price Prediction 2023-24
The spot CVD was in a strong uptrend in November, just like the OBV. It showed healthy demand behind the recent rally.
Therefore, even if we get a dip to $233 or $227, a continuation of the rally appeared likely based on the evidence at hand.
