BNB bounces back! After a shaky start, Binance Coin climbs above crucial resistance levels, closing at $523 and hinting at a bullish shift in the market.
- The BNB price saw uptrends during the past week. Its RSI has remained below the neutral line despite the uptrend
Binance Coin (BNB) ended its trading week on a high note, showing resilience and a notable recovery. It was able to break key levels with its uptrends, but still faces challenges ahead, with resistance looming at a key price range.
Binance ends the week on a high
Analysis of Binance Coin (BNB) on a daily time frame revealed a positive conclusion to the week, as noted by AMBCrypto.
After starting the week with a notable 6% decline, BNB managed to recover, ending the week at around $523, marking a 2.83% increase. This uptrend continued into the new week, with BNB trading at around $531, indicating an additional increase of over 1%.
Source: TradingView
A significant aspect of this recovery is BNB’s breakthrough above its long-moving average (blue line), which had previously acted as a resistance level.
This shift suggests a potential change in market sentiment from bearish to more bullish or at least neutral in the short term.
However, BNB still faces resistance at about $553, marked by its short-moving average (yellow line).
What the indicators say about the Binance move
Analysis of BNB’s technical indicators reveals an RSI value of 48.01, suggesting that the asset is neither in overbought nor oversold territory.
The RSI’s proximity to the neutral zone indicates a lack of strong momentum in either direction, which might mean that recent price recoveries could encounter resistance if buying pressure doesn’t increase.
Additionally, the MACD line has crossed above the signal line, a move that often signals a potential bullish reversal or a reduction in bearish momentum.
This is further supported by the shrinking negative histogram bars, indicating that the downward momentum is weakening. However, since the MACD remains in negative territory, the overall momentum has been bearish, though it may be shifting.
BNB traders get more cautious
Analysis of the Binance Coin (BNB) open interest indicates a recent decrease. Data from Coinglass revealed that BNB’s open interest fell from around $500 million to approximately $400 million recently.
As of this writing, the open interest was about $470 million.
Source: Coinglass
Read Binance Coin (BNB) Price Prediction 2024-25
The current open interest level suggests that while there is still significant engagement in BNB derivatives, the momentum has somewhat weakened compared to previous highs.
This reduction in open interest could imply a decrease in leverage within the market. Also, it could mean a more cautious approach from traders, possibly due to market uncertainty or recent price volatility in BNB.
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