BNB Rally Stalls: Will $500 Be the Next Downside Target?
- Binance Coin failed to defend the gains made earlier this month.
- Prices are likely to reach $500 before the recovery begins.
The bulls failed to defend Binance Coin (BNB) from the resistance at $635. At the time of publication, prices returned to the support zone at $570. Technical indicators underlined the bearish expectations.
Futures data was also grim. On the 29th, sentiment seemed to turn bullish, but this was not accompanied by a recovery in open interest.
While speculators wait for the next trend to set in, what should traders expect this week?
The rollback to the average level turned out to be boring.
Source: BNB/USDT on TradingView.
In the first week of June, Binance Coin recorded huge gains, reaching $717 and setting an all-time high. From the Fibonacci levels there was an expansion of 23.6% and a technical resistance zone. This led to a drop in prices.
Previous range highs of $635 were expected to stop the bearish rally, but this did not happen. The average level of $570 was tested as support and held throughout the past week.
The daily RSI was at 40, indicating bearish momentum. The CMF index was at -0.05 and has seen strong capital outflows from the BNB markets in recent days. Taken together, they indicated the likelihood of further losses.
Liquidity in the $550 and $520 regions is likely to attract prices ahead of a bullish recovery.
Slow growth in spot demand is an encouraging sign
Source: Coinalize
Open interest has been in a downward trend since June 6. It fell sharply from $1.068 billion that day to $618.2 billion on June 12. This bearish trend has continued, with open interest at $554 billion at press time.
Read Binance Coins (BNB) Price Prediction 2024-2025
CVD advertising showed a similar trend. From June 19 to June 22, it attempted to recover but failed due to lack of sustained demand.
In the last two days, the spot exchange rate has started to rise slowly. The funding rate has also risen, indicating that speculators may become bullish again.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
This is an automatic translation of our English version.