Binance Coin [BNB] Price Analysis: Bullish Momentum Taking Root
– Binance Coin [BNB] has reacted extremely positively over the past two days of trading, gaining 20.5% within four days.
– The daily market structure has turned bullish and a retracement before a sustained move higher up the charts remains possible.
– Spot CVD is surging past February highs in response to demand, while funding rate has slowly climbed back into positive territory, indicating long positions are once more dominant in the market.
Bullish Market Structure
The daily timeframe showed that the market structure for Binance Coin seemed to be bullish once more. The recent lower high at $294 was beaten during the latest reversal, but the $309-mark had posed some resistance over the past 24 hours. A strong confluence of support at $292 was found, which included the 78.6% Fibonacci retracement level and Value Area Low (VAL). Moreover, the price action from early March showed that this region ($285-$292) was significant support on the lower timeframes too.
The Relative Strength Index (RSI) crossed above 50, which indicated that bullish momentum had taken root in the market. The On Balance Volume (OBV) also recorded gains and could continue higher if buyers remain active in this period of consolidation.
Demand Rising In Spot Market
The spot Continuous Derivative Volume (CVD) rose significantly, surpassing its previous February highs in response to rising demand for BNB tokens among traders and investors alike. However, Open Interest (OI) dipped slightly over 48 hours despite an increase in price – suggesting there may be room for further upside movement if buyers remain active in this period of consolidation.
Potential Retracement Levels
Longer-term buyers can wait for a retracement into the $285-$292 zone as it has shown significant support on lower timeframes since early March and remains a potential entry point based on Fibonacci levels too. More risk-averse traders can wait for a positive reaction over three days before looking to buy and trade with the trend while monitoring indicators like RSI and OBV closely as well as keeping an eye on OI levels too.
In conclusion, Binance Coin [BNB] is showing signs of strength with its latest surge higher up the charts accompanied by strong demand from spot markets as seen by rising CVD figures along with funding rates returning to positive territory – suggesting longer positions are once more dominating current sentiment in this market segment . Traders should keep an eye out for potential pullback levels around $285-$292 before entering any new positions depending on their risk appetite while monitoring indicators like RSI and OBV closely too alongside OI levels as well