Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- On-chart indicators pointed to a continuation of bullish rally.
- Open interest rose along with a positive funding rate to hint at strong bullish sentiment in the futures market.
Binance Coin [BNB] broke out of its long-term price range with a 12H candle close above $225. However, the bearish market structure dragged BNB’s price action back into the range with a 7% price dip, halting the bullish momentum.
Read BNB Chain’s [BNB] Price Prediction 2023-24
Despite the pullback, the on-chart indicators hinted at a strong continuation of the bullish rally with buyers determined to flip the $225 price level to support.
Buyers seek to flip BNB bullish
Source: BNB/USDT on Trading View
BNB has traded under a bearish market structure since June 2023 but the current price action showed buyers actively looking to change the altcoin’s long-term bias.
The Relative Strength Index (RSI) highlighted bullish strength, as it rose into the overbought zone. Although the RSI dipped, it remained above neutral 50. When the RSI is at the upper level (51 and above), it strongly indicates sustained buying pressure.
Similarly, the capital inflows were slowly returning, as seen by the Chaikin Money Flow’s (CMF) hovering around the zero mark.
Thus, the price action presented an easy opportunity. If bulls successfully flip the $225 level to support, buyers can aim for 10% profits at $250. However, another price rejection at $225 could allow shorts to retest the $205 support level.
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Open Interest hinted at imminent gains for BNB
Source: Coinalyze
The Open Interest rose over the past 24 hours along with bullish sentiment returning after the pullback. The OI rose from $290 million to $317 million to indicate encouraged longs.
Similarly, the funding rate of BNB moved into positive territory. This showed that more speculators were willing to buy the token and was evidence of an increase in demand.
