274 Interactions, 2 today
According to Binance’s CEO, the 15th Binance Coin burn is scheduled for mid-April. This event lowers supply and is a long-term bullish development, but it is unlikely to have an immediate effect on price. BNB was jumping between the $240 level of support and the $277 level of resistance at the time of publishing, and selling volume has been marginally but significantly greater than buying volume in recent weeks.
Binance Coin 1-day chart
Following its good success in February, BNB was in a consolidation period on the rankings. Bitcoin dropped from $61,000 to $200, resulting in a pullback to $200. Binance Coin has since recovered to trade above the $270 mark, but there is still no evidence of high buyer interest.
BNB’s technological metrics showed a loss of definite traction. A split above $300 was attempted nearly three weeks ago but was successfully resisted. The $280-$300 area has acted as a supply zone, and the bulls must flip this before making another drive past $300.
The RSI moved slowly around neutral 50 until recently, when it fell to 38 and then recovered to 56. This, though, does not suggest a change in sentiment from bearish to bullish. Over the past month, the OBV has been declining. An influx of buyers is needed for BNB to grow higher.
The Stochastic RSI was in overbought territory, which, combined with the selling pressure, could lead to a return to $240 for BNB. Trading activity was also steadily decreasing, lending credence to the notion of restructuring.
Longs were an overcrowded exchange in the sector in recent days, as shown by the funding prices for BNB on Binance, FTX, and Huobi.
The $240 price range is an appealing location to place bids to buy BNB at, whilst a rise above $277 and a retest of this level can also be used to join long trades. Shorting Binance Coin on scalp trades with a strong stop-loss set above $280 could be lucrative on rejection. A bullish Bitcoin, on the other hand, raises the possibility of this deal.