Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- BNB remained stuck in a tight range between $225 and $245.
- Rising mean coin age suggested a breakout could be imminent.
The recent bullish market sentiment has seen Bitcoin [BTC] rise above $30k and Ethereum [ETH] inch toward $2,000. As the fourth largest cryptocurrency, Binance Coin [BNB] was expected to follow with significant gains. However, the opposite has been the case.
Realistic or not, here’s BNB’s market cap in BTC’s terms
With the regulatory searchlight continuing to loom large over Binance across different countries, BNB has struggled, with the price stuck in a tight range over a month-long period.
While the price action on the higher timeframe remained bearish, recent movement on the lower timeframes could herald a new direction for BNB.
Bulls can’t get past $254
Source: BNB/USDT on Trading View
BNB’s rapid descent took it to the December 2022 low of $222 on 12 June, with the bearish structure on the higher timeframes limiting a bullish rally. Bulls rallied from the $225 support level on 29 June, registering 12.6% gains.
However, buyers could not cross the $254 hurdle, leading to a 4.2% price drop on 3 July. This highlighted the selling pressure still present at the resistance level.
Overall, bulls have tested the $254 resistance level three times in June on the four-hour timeframe, with buyers yet to register a successful break of the level.
The latest bullish rally saw the Chaikin Money Flow (CMF) flip positive, ranging between +0.05 to +0.25. This showed that traders were actively looking to back BNB in the short term while waiting for new developments around its regulatory issues.
The Relative Strength Indicator (RSI) also stayed above the neutral 50, although it dipped after the recent rejection at the resistance level.
With resistance levels weakening with each retest, bulls would hope to take advantage the next time price approaches $254. The short-term target for bulls would lie at $265 and $283. On the other hand, the bearish structure could yet see price dip to the $222 to $205 price level.
Rising mean coin age could spur bulls
Source: Santiment
A bullish breakout could be imminent for BNB, based on its on-chain metrics. Data from Santiment showed that the 90d mean coin age has been on a sharp rise since 5 June. This hinted at an accumulation of BNB by long-term holders at its press time prices.
Is your portfolio green? Check out the BNB Profit Calculator
The 30d MVRV ratio was also positive and continued to rise, as at press time. Thus, short-term holders were already realizing gains and could make more gains with a successful break of the $254 resistance level.
This could serve as an incentive for buyers in the short term to stem the selling pressure.
