BNB Bulls Charge Ahead, Targeting New Heights

Binance Coin (BNB) bulls halted losses at $500, leading to a recovery with 99.5% gains in 31 days, reaching highs unseen since January 2022. Despite a bullish market structure, indicators suggest a possible deeper retracement, with trading volume indicating demand may not be driving the rally.

BNB Bulls Maintain Momentum, Eyeing Higher Targets

Binance Coin (BNB) has exhibited resilience in the face of recent market volatility, with bulls asserting their dominance and driving a recovery from the $500 support level. Despite a decline in trading volume, BNB has surged to levels not witnessed since January 2022, marking a remarkable 99.5% gain in just 31 days.

Bullish Structure Intact

The one-day timeframe presents a bullish market structure, suggesting that the upward momentum remains intact. BNB briefly retreated from its recent highs, but a swift bounce from the psychological $500 level has reinforced the bullish bias.

Retracement and Indicators

The four-day retracement from $645 to $500 saw prices test the 50% Fibonacci retracement level. Bulls swiftly reversed the decline, demonstrating their resolve.

However, some indicators hint at the possibility of a deeper retracement. The declining trading volume, as evidenced by the OBV and trading volume bars, suggests that demand may not be the primary driver of the rally.

RSI Momentum and Hidden Divergence

The RSI indicator displays strong bullish momentum, currently reading at 63. Notably, a hidden bullish divergence has emerged, where the indicator made lower lows while the price formed higher lows.

Resistance and Support Levels

BNB has rallied from $500 to $579 at press time. Resistance levels to watch in the near term include $600, $626, and $653, which represent areas of potential liquidity attraction.

Conversely, support levels at $500 and $475 provide potential buying opportunities in the event of a pullback.

Bullish Bias Remains

Despite the potential for a deeper retracement, the overall trend for BNB remains bullish. A dip to the golden pocket between $418 and $466 would present a favorable entry point for long positions.

Conclusion

BNB bulls have demonstrated their strength and determination, driving a recovery from the $500 level. While indicators suggest caution, the bullish market structure and resistance levels provide guidance for potential trading strategies. As the market evolves, traders should monitor volume and momentum closely to gauge the sustainability of the rally.