BNB Holds Steady at Key Support Level
The buying strength at the $594 support level has brought an end to the selling pressure on Binance Coin (BNB) over the past 48 hours.
Earlier, BNB buyers had tried to break above the $618 resistance and push for a new all-time high (ATH). However, the selling pressure at that level mitigated the bullish run-up.
This led to a 5% drop over the period, but buyers were able to hold firm at the critical support level, maintaining the uptrend. Can buyers use this momentum to scale the resistance and hit a new ATH?
Capital Inflows Remained Rock Solid
The inflow and outflow of capital in the short and long term are critical for the price action of any cryptocurrency, with the Chaikin Money Flow (CMF) serving as a key indicator of net inflows and outflows.
Analyzing the capital inflows for BNB on the four-hour timeframe showed that inflows had been positive over a 20-day period, reaching a peak of +0.43 before dipping to its current level of +0.12.
Along with the Relative Strength Index (RSI) hovering around the neutral 50 mark, despite the sell-off, this helped to strengthen the bullish conviction in the short to medium term.
A full close of the four-hour candle above the $594 support level would serve as an entry signal for new long positions with targets at $620 – $640. With sufficient buying pressure, this target could be surpassed, and BNB might hit a new ATH.
Binance Looking to Increase Its Market Share
A recent announcement on the official Binance page encouraged small to medium crypto projects to apply for official listing on Binance.
With different listing methods available such as:
- Launchpool
- Megadrops
These methods are bound to drive demand for BNB, which is usually staked to receive free tokens of new projects listed on Binance.
This could further strengthen the bullish price action and see BNB go on a sustained bullish pump.
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