Binance Coin (BNB) has recently experienced a significant surge, and investors are anticipating this trend to continue. Technical analysis suggests that BNB is trading at an attractive risk-reward level that could draw in buyers, although a drop below $301 could alter expectations. However, current indicators and price movements suggest an upward trajectory is more likely.
Examining BNB’s 4-hour price chart reveals a consolidation period following a strong rally. If the market structure is viewed pessimistically, a potential drop below $307 could trigger the start of a downward movement.
This potential decline could lead BNB to the $273-$260 support zone, which was the price range before the recent uptrend. The $301.4 to $315.4 price range is considered a support zone on the weekly chart, which served as resistance in May 2022. A fall below $301.4 could push BNB to a support level of $273.5 or even lower to $261 if it fails to hold.
At the time of writing, key indicators such as the Relative Strength Index (RSI) were at 50.21, indicating neutral investor sentiment despite the sharp rise. Additionally, the On-Balance Volume (OBV) did not show a significant decrease with the rise.
This suggests that during the price dip to $307, the selling volume remained low, which could imply an expectation of further price increases in the coming days.
According to Coinalyze data, sentiment appears to be slightly in favor of sellers, with recent declines in both price and Open Interest (OI) rates. A rise in OI and spot Cumulative Volume Delta (CVD) could lead to BNB prices pushing past $315, potentially reaching $335 and $350 in the next week or two. The next resistance level for BNB is identified at $350.