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- Indicators on the chart pointed to a continuation of the bullish rally.
- Open interest rose along with a positive funding rate, indicating strong bullish sentiment in the futures market.
Binance coin [BNB] broke out of its long-term price range with a 12H candle near $225. However, the bearish market structure dragged BNB’s price action back into the range with a 7% price decline, stalling the bullish momentum.
Read BNB Chain’s [BNB] Price forecast 2023-24
Despite the pullback, the chart’s indicators pointed to a strong continuation of the bullish rally, with buyers determined to reverse the $225 price level for support.
Buyers are trying to turn BNB bullish
Source: BNB/USDT on Trading View
BNB has been trading under a bearish market structure since June 2023, but the current price action showed that buyers were actively looking to change the altcoin’s long-term bias.
The Relative Strength Index (RSI) highlighted the bullish strength as it rose into the overbought zone. Although the RSI fell, it remained above the neutral 50. When the RSI is at the highest level (51 and above), it strongly indicates continued buying pressure.
Similarly, capital inflows slowly returned as evidenced by the Chaikin Money Flow (CMF) hovering around the zero line.
So the price action presented an easy opportunity. If bulls successfully turn the $225 level into support, buyers can aim for a 10% gain at $250. However, another price rejection at USD 225 could allow shorts to retest the USD 205 support level.
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Open Interest hinted at upcoming profits for BNB
Source: Coinalyse
Open Interest rose over the past 24 hours as bullish sentiment returned after the pullback. OI rose from $290 million to $317 million to indicate encouraged longs.
Similarly, BNB’s funding rate moved into positive territory. This showed that more speculators were willing to buy the token and was evidence of an increase in demand.
