Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Binance Coin has been trading within limits and is expected to continue to do so
- The near-term bearishness will likely force a retest of the range lows
Binance coin [BNB] On October 17, the public launch of the Greenfield Mainnet took place in the Chain Ecosystem. The announcement came after six months of development. The original symbol for governance and gas was BNB, but this news did not trigger a bullish price reaction.
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A recent report from AMBCrypto documented BNB’s stagnation over the past six weeks. While there have been short-term momentum moves, the market has lacked a steady trend. This was unlikely to change this week.
The $220 resistance zone pushed back the BNB bulls on Monday
Source: BNB/USDT on TradingView
BNB’s H4 market structure reversed bearish a day before the time of writing. The recent higher low at $211.4 was broken on Tuesday (October 17). Moreover, BNB has made a lower high at $213.9, and the RSI also fell below neutral 50.
This reflected a shift in momentum towards bearishness. The bullish order block in H4 at $205, next to the range low at $204, is expected to serve as support again. A retest of this zone would provide a buying opportunity.
The price action is simple. Although the H4 structure favored the bears, a rebound from the $205 support zone was worth betting on with low risk. Traders should be careful with their position size in case of a drop below $202, which would invalidate the idea.
The Open Interest chart indicated that further losses for BNB were imminent
Source: Coinalyse
BNB’s funding rate once again entered negative territory, showing bearish pressure in the futures market. More speculators were willing to short the token, and for good reason. Open Interest has declined along with prices in recent days, indicating discouraged longs.
Realistic or not, here is the market cap of BNB in terms of BTC
The spot Cumulative Volume Delta (CVD) saw a rebound on October 15, when BNB rose from $206 to $215. However, the CVD started to decline over the past 24 hours, evidence of a decline in demand.
