In the current market situation, can Binance Coin bulls maintain the upward trend?
BNB has turned long-term trendline resistance into support.
Derivatives data shows that prices are consolidating above key moving averages, presenting a bullish advantage.
After breaking through long-term trendline resistance, Binance Coin [BNB] set a new all-time high (ATH) of $794 on December 4th. This surge was driven by the broader bullish sentiment in the cryptocurrency market, primarily fueled by Bitcoin [BTC]'s recent rise.
At the time of writing, BNB is trading at $715.86, consolidating near its key support area.
BNB is consolidating at key support levels.
The price action of BNB on the daily chart reflects strong bullish resilience as it holds above the 20-day, 50-day, and 200-day EMAs. However, after recently reaching a new ATH, the price action has consolidated over the past few days.
If the close falls below the $712 support level, BNB could pull back to the 50-day EMA at $663, which may serve as a strong dynamic support level.
The Relative Strength Index (RSI) is at 57, well below the overbought region. This indicates that if broader market sentiment favors the bulls, there is still room for further upside.
$712 support is currently a key short-term support level. If the bulls defend this level, a retest of the resistance area between $750 and $760 may occur. A close above this area could push BNB into a price discovery phase.
Derivatives data shows bullish sentiment.
The derivatives market data for BNB reflects a growing interest among traders. Trading volume has increased by 70.85% to $1.7 billion, indicating a significant rise in trading activity following the recent upward trend. Open interest has also risen by 2.89% to $950.9 million, suggesting that new positions are entering the market. Notably, options open interest has surged by 62.49%.
Interestingly, the long/short ratio (over the past 24 hours) is 0.8882, indicating that overall sentiment is slightly cautious. However, Binance traders have remained quite optimistic, with a long/short ratio of 3.3085. Additionally, top traders maintain a strong bullish inclination, with a ratio of around 2.4.
BNB is consolidating near key support levels, indicating that bulls have a chance to rebound. Although broader market sentiment (especially the movements of BTC) will remain crucial, traders can look for rebounds from its recent EMA to gauge the sustained upward trend.
On the other hand, a drop below $712 could invalidate the bullish setup and trigger a retest of the 50-day EMA.
Traders should closely monitor Bitcoin's momentum and BNB's price action near key levels before making trading decisions.