Key Insights:
- BNB showed rising buying volume, suggesting a bullish short-term move.
- The CME gap fill is a potential target for BNB, signaling upward momentum.
- Resistance zones could trigger a bearish reversal if the price fails to break higher.
Binance Coin (BNB) price has shown signs of a potential upward climb. A significant increase in trading volumes supported this.
The price moving toward key levels makes analysts watch for a possible breakout or continuation of its current trend. A CME gap above the current Binance Coin price suggests a tendency for price action to fill such gaps. Historically, this pattern has been observed repeatedly in market behavior.
Buying Volume Rises as CME Gap Draws Attention
According to market analysts’ best_analysts, rising buying volume in the medium term can be observed on the BNB 4-hour chart. This scenario might prompt a retest of upper resistance zones.
It could also fill the nearby CME gap, influencing the BNB price. The gap could become a short-term target if buying pressure persists, as price often moves to fill such gaps.
Binance Coin also appears on the chart in crucial technical areas. Buyers have returned to buy. However, a failure to break above resistance may lead to a price reversal.
If market conditions weaken, BNB price could rise to fill the gap and test higher levels. Afterward, it may reverse direction and decline.
Falling Wedge Forms on Price Pattern, Breakout Possible
On the daily chart, BNB is consolidating in a falling wedge pattern, as per market analyst FedInsiders. A technical formation usually indicates that the bearish momentum is weakening.
Hence, a breakout could follow. Binance Coin price currently resides in the support/resistance zone. The next move should depend on how the price reacts to this range.
Breaking above the wedge and the nearby resistance may prompt the BNB price toward higher targets of around $700.
Alternatively, if price does not break out and is rejected from the wedge boundary, that could lead to further downside. If it breaks down, the following support targets will be nearer to $440 and $340.
Technical Indicators Analysis
On the daily chart, Binance Coin traded around $553.98, below the middle line of Bollinger Bands as of $609.10. Bollinger Bands are widening, which suggests increased volatility. The price has recently hit the lower band, which could be the support level, though the downside is possible.
The RSI was currently at 34.68, which means the market is oversold. Following this, BNB price is expected to bounce back. This could be considered early bullish momentum if the RSI crosses over the 50 midline.
The MACD is still bearish as the MACD line was below the signal line. However, that means the histogram bars are narrow, which implies downward momentum is slowing. A crossover of the MACD above the signal line can confirm a possible trend change.
Meanwhile, the Cumulative Volume Delta (CVD) has a negative value of -164.84K. This indicates that sellers have outweighed buyers recently in recent trades. The CVD must turn positive to build bullish momentum with more substantial buying pressure.
Analyst Sees Breakdown to $440–$340 as Open Interest Falls
Market analyst Cryptclay believes that current price action could be a part of a distribution phase. Binance Coin is trading within a rising channel on the weekly chart.
Weakening support near the lower boundary might reduce the likelihood of a breakdown. In this case, the mid-term targets are $440 and $340.
The total open interest in Binance price has declined by 8.01% in the past 24 hours. At press time, it was at $472.1 Million. Most of this is in perpetual contracts, valued at $469 million, while futures contracts account for only $3.1 Million.
A decline in open interest indicates traders are closing their positions. This may be attributed to recent price volatility or profit-taking.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.