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- Technical indicators for BNB showed that further gains were likely for Binance Coin
- The drop in Open Interest showed that sentiment in the futures market was not strongly bullish
Binance coin [BNB] has been on a downward trend since May. This downtrend has been uninterrupted on the higher timeframe charts such as the daily, but there have been lower timeframe rallies that served as pullbacks in the larger trend.
Read Binance Coin’s [BNB] Price forecast 2023-24
At the time of writing, BNB was in the midst of a significant upswing. This gain had stalled at the $212 resistance, but indicators showed the bullish outlook was good.
The two-week BNB range formation continues to hold
Source: BNB/USDT on TradingView
Since September 11, Binance Coin has traded within a range (orange) that stretched from $203.9 to $221.3. The midpoint of this range was at $212.7. It was right here that Binance Coin saw a rejection just a few hours before the time of writing.
The Relative Strength Index (RSI) remained above the neutral 50 and the Chaikin Money Flow (CMF) reading of +0.11 showed significant amounts of capital entering the BNB market. On-Balance Volume (OBV) has also moved higher over the past two days. Therefore, it seemed very likely that Binance Coin would break the USD 212.7 resistance and climb towards USD 221.
Bulls can wait for a move above $212 and a retest of support before buying. Alternatively, if we see a dip in H4’s bullish order block in the $203-$207 region (cyan box), that could also serve as a buying opportunity. In both scenarios, the take-profit goal would have the highest range.
The Open Interest chart showed that the bullish belief has faded
Source: Coinalyse
In the last few hours, even as the price of the exchange token rose to $212, the Open Interest (OI) quickly fell from $327 million to $320 million. This was strange as the expectation is that bullish belief would rise as BNB posted gains within the range.
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Still, the drop in OI as prices tested mid-range resistance showed that bullish sentiment was weak and speculators preferred to take profits. The spot Cumulative Volume Delta (CVD) has been in a significant uptrend over the past two days, indicating that Binance Coin was likely to rise again even though it first saw a dip to the $207 level.