The 3-month liquidation heat map showed that a bearish reversal from the top of the high range was likely.
Changpeng Zhao's early launch was supposed to be a bullish catalyst.
The exchange has shown signs of a possible price decline.
Binance Coin (BNB) traded at a 10-week high again. The early release of former Binance CEO Changpeng Zhao from prison was expected to spark bullish sentiment in the market.
This sparked some bullish activity on social media, but not much on the price action charts. For BNB, CZ’s “gm” tweet was followed by a 3.9% drop over the next six hours. Along with the longer-term range-bound rises, some questions have been raised about the future direction of the exchange token.
Source: BNB/USDT on TradingView
The nearly three-month range from $464 to $604, with the mid-range level at $535, has acted as support and resistance in recent weeks. In mid-September, BNB retested this level as support before rallying 12.7% to reach the range highs.
The daily RSI remained in a bullish zone above the neutral 50 level but formed a bearish divergence. The RSI made a lower high while the price rose, indicating a possible correction.
Moreover, OBV failed to test its July highs. The same situation was repeated in mid-August, when BNB faced a tough rejection from the $600 level. The technical indicators combined showed that a rejection from the range highs is the most likely scenario.
Clearance levels highlight $635 area as price target
The three-month heat map showed that the $621-635 area was a magnetic area for the price. Before that, it was the $600-614 area that attracted the price before pulling back to $585.
Read Binance Coin [BNB] Price Prediction 2024-2025
Similarly, a false breakout to higher levels of the range to $635 before a pullback is a distinct possibility. Traders should be prepared to take profits as BNB approaches these levels and wait for a pullback and a buying opportunity.
Disclaimer: The information provided does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.
