Sharp Recovery: Binance Coin Bounces Back from Support Levels

Sharp Recovery: Binance Coin Bounces Back from Support Levels

The Recent Rally and Binance Coin’s Recovery

The recent rally in the market caused Binance Coin (BNB) to sharply recover from the support line of its symmetrical triangle pattern. This model forms when a token’s price reaches various highs and lows. It indicates that the token’s price is squeezed between buyers pushing prices up to meet resistance and sellers pushing down to find support.

Santiment Reports on BNB

When this occurs, the token is said to be consolidating within a specific range. At the time of writing, BNB was valued at $583.84 after a 3% rise from the $566 support level. Considering market sentiment is a good starting point to evaluate whether the altcoin can rise above the upper trend line of the triangle.

According to data from the cryptocurrency analytics firm Santiment, the weighted sentiment of the cryptocurrency was 0.607 and was in an upward trend at the time of writing. The positive value of the metric indicated that the BNB market received positive sentiments from participants. The fundamental momentum indicators of BNB also confirmed this bullish outlook. At the time of writing, the money flow index (MFI) was at 65.61 and rising. This suggests that market participants preferred accumulating BNB rather than distributing their assets.

BNB Targets $643

Similarly, the altcoin’s Chaikin money flow was in an upward trend and above the zero line at 0.07. This indicated a steady inflow of liquidity into the BNB market. If this indicator continues to rise, it could mean that demand for the cryptocurrency is increasing. If sentiments continue to rise, buyers could push BNB’s price above the triangle’s resistance line. The cryptocurrency’s price could rise to $596 and then to $643.

Conversely, if this bullish forecast is invalidated and downward pressure increases, BNB’s price could fall below the triangle and trade around $520. The likelihood of this happening increases considering the significant negative funding rate of the altcoin in recent weeks. According to Coinglass, the altcoin has recorded predominantly negative funding rates since April 23. As of May 15, BNB’s funding rates fell to 0.106%, the lowest level in recent months. The cryptocurrency’s funding rate was last this low in February.

Leave a Reply

Your email address will not be published. Required fields are marked *