Against all expectations, the Binance coin price is outperforming the crypto market. Let’s see the upcoming prospects for BNB.
Status of Binance Coin (BNB)
While the price of BNB tried to counter its bearish structure, American justice came to sanction the exchange issuing the token. This caused its price to drop by more than 11% in one day. Since then, Binance Coin has entered a consolidation phase, allowing it to remain above $230. This last level was highlighted in the analysis of September 21, 2023.
The price of BNB has recently seen an increase, probably fueled by the new launchpool set up by Binance. Today, BNB is trading around $248. It sits just above the 50 and 200 day moving averages, recently forming a golden cross. This phenomenon supports the idea of an upward trend reversal in the short or medium term. As for the oscillators, they demonstrate a change in dynamics by passing slightly above the middle threshold.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on BNB/USD derivatives
Binance Coin’s open interest being relatively stable, suggests that traders still lack conviction about the future performance of the token. However, previous variations indicate a significant divergence from its price. Indeed, this situation suggests a predominant participation of traders on the sellers’ side. Specifically, the recent drop in BNB price has caused substantial liquidations of long positions. However, it is remarkable that this development has not led to a clear reduction in open interest. Therefore, this observation suggests that the majority of traders have adopted a selling posture in the Binance Coin market.
Assumptions for the Binance Coin (BNB) price
. If the price of BNB remains above $220, we could anticipate a bullish continuation up to the $270 level. The next resistance to take into account, if the bullish movement continues, would be the $300 threshold. At this stage, this would represent an increase close to +18%.
. If the price of BNB fails to stay above $230, we could envisage a return to $205 – $210. The next support to take into account, if the bearish movement continues, would be around $180. At this point, that would represent a drop close to -29%.
Conclusion
BNB has reason to be reassured, given that the exchange issuing the token appears to have resolved its problems with American justice. This removes a thorn in BNB’s side, which already seems to be reflected in its price. It is trying as best it can to counter its downward trend. A renewed confidence and a return of buyers are necessary to counter the selling pressure on BNB and envisage a bullish scenario. To confirm or refute the various hypotheses formulated, it will be essential to carefully monitor the price reaction at the different levels identified. Beware of potential “fake out” and “market squeeze” in each situation. Additionally, it should be remembered that these scenarios are based solely on technical analysis. The price of cryptocurrencies may change more or less quickly, depending on other more fundamental factors.
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