Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The BNB price action was firmly in favor of the bulls.
- A pullback to $240 or lower looked likely, but after that the price could rally to rise above the $256 resistance.e.
Binance coin [BNB] broke out of the forty-day range on October 23, the same day Bitcoin [BTC] rose past the $30,000 resistance.
BNB Smart Chain’s third quarter security report is out. AMBCrypto’s analysis found that monetary losses through the BNB network have been significantly reduced compared to 2022 figures.
BNB’s price action has been solidly bullish over the past ten days. However, the psychological resistance at $250 was close to the June-July technical resistance level of $256. This round-number resistance has seen BNB bears come out on top in recent trading hours.
BNB could return to $240 or lower, but indicators remain positive
Source: BNB/USDT on TradingView
Highlighted in orange was a range within which BNB traded from mid-September to the end of October. This range extended from $204 to $221. On October 23, BNB exceeded the highs of this range.
Furthermore, prices retested the $220 level as support on October 26 before continuing their rally.
The RSI stood at 65, indicating strong bullish momentum and an uptrend. The price action on the one-day chart also had a bullish structure.
On-Balance Volume has been trending higher over the past two weeks, indicating increased buying volume. Chaikin money flow was also well above +0.05, highlighting the remarkable capital inflow into the market. Together, these factors reinforced positive expectations for BNB.
Still, the 5% drop in recent hours meant BNB could see a pullback. The region of $231-$238 was a support zone. The Fibonacci retracement levels (light yellow) also highlighted $233.3 and $227.1 as significant support levels.
Social sentiment was optimistic and rising demand could push BNB prices higher
Source: Santiment
Santiment’s data showed that weighted sentiment was positive. It was the highest point BNB’s weighted sentiment has reached in the past three months.
Moreover, the BNB’s social dominance has also increased since its mid-October low.
Source: Coinalyse
The Open Interest (OI) chart above saw a sharp jump up on November 4, when BNB was trading at $229. The OI and price moved higher until November 6, and since then both have seen a dip.
This showed that speculators had bullish beliefs in the short term, but lost this confidence after the token encountered resistance around $255. It also suggested that bullish pressure could take a minor hit in the coming days.
Read Binance Coin’s [BNB] Price forecast 2023-24
The spot CVD was in a strong uptrend in November, as was 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 seems likely based on the available evidence.