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BNB could move below $287.3 support.
A break above $314.2 would invalidate the bias.
Binance coin [BNB] put in an impressive performance after a huge FUD late last year. It rose from $240 to over $310 in the past two weeks, giving investors a 30% gain.
However, it faced a price rejection of $314.2, a key resistance zone in late November 2022. At the time of writing, it was trading at $302.4 and could fall further.
Read BNB price prediction 2023-24
The $287.3 support: Is a breach below likely?
Source: BNB/USDT on TradingView
On the 12-hour chart, the Relative Strength Index (RSI) and the Money Flow Index (MFI) were in overbought territory. This implies that buying pressure was high, but that the overbought condition also put BNB on a path to a possible trend reversal.
Moreover, BTC’s rally only lasted three days during the last US CPI release on Dec. 13. If the trend repeats, BTC’s bullish momentum could wane, prompting BNB bears to act.
Therefore, selling pressure could increase in the coming day(s). This could prompt BNB to retest or break below the $287.3 support. BNB’s decline below support could be contained at $283.3 or $277.8. These levels could serve as short selling targets for bears if the trend reversal is confirmed.
However, bulls may still try to retest or break above the USD 314.2 resistance, especially if BTC remains bullish. Such an uptick would nullify the above bearish bias. The move up allows bulls to aim for BNB’s November high of $360 if they overcome the $337 hurdle.
How many 1,10,100 BNBs worth today?
BNB saw an increase in daily active addresses, but a decrease in sentiment
Source: Sentiment
Santiment data showed that BNB’s daily active addresses were steadily increasing, indicating that more accounts were trading BNB as prices rose, boosting recent upward momentum.
However, as we went to press, weighted sentiment shifted to the negative side. It signals a drop in investor confidence and the outlook for the asset, which could undermine BNB’s bull run somewhat.
In addition, BNB’s open interest rate (OI) has been declining since late December last year. At the time of writing, the OI continued to fall, despite the price increase of BNB. The price/OI divergence could indicate slowing uptrend momentum and a likely trend reversal.
Source: Coinglass
This post BNB price reversal would be imminent on the retest of this level
was published first on https://ambcrypto.com/bnbs-price-reversal-could-be-imminent-on-the-retest-of-this-level/
