- Binance Coin maintained its bullish bias.
- The lack of strong selling volume during the dip suggested that buyers remained the favorites.
Binance Coin [BNB] is expected to continue its stellar run of the past few weeks. From a technical analysis perspective, the token was trading within an area where the buyers would be interested due to the risk-to-reward aspect.
A drop below $301 could change these expectations. The evidence from the indicators and the price action showed that a move upward is more likely. Should traders look to enter long positions on BNB?
The former weekly resistance zone is expected to push prices upward
Source: BNB/USDT on TradingView
The 12-hour price chart of BNB showed a bullish structure was present. An aggressive reading of market structure would infer that a fall below $307 would initiate a move downward. This could reach the $276-$266 support zone.
The $301.4-$315.4 zone marked in red is a support zone on the one-week chart. It had served as resistance back in May 2022. A drop below $301.4 would likely see BNB retrace to the $276.5 support level or lower.
The RSI was at 61 and showed that bullish momentum was strong despite the recent dip. The OBV did not see a large drop, which meant that the selling volume was low when the token fell to $307.
Hence, it is expected that the buyers will drive prices higher in the coming days.
The short-term sentiment leaned bearishly
AMBCrypto's analysis of the market sentiment based on Coinalyze data showed that sentiment favored the sellers slightly. The past three days saw both the prices and the Open Interest decline. Additionally, the spot CVD has also taken a hit.
Read Binance Coin's [BNB] Price Prediction 2023-24
A move to $335 and $350 could be expected over the next week or two if the OI and the spot CVD begin to trend higher and prices climb above $315.
The next significant resistance zone is at $350-$355. This region has not been breached in nearly two years.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer's opinion.
