The Moon Show recently highlighted on X that Binance Coin (BNB) might be on the verge of breaking a descending resistance, which could trigger a price surge.
According to the data, if BNB breaks this resistance, the price target could rise to $875. This optimistic outlook comes amidst BNB testing critical support levels, with market participants closely watching whether the coin can sustain its price above these zones.
BNB Price trends and support levels
However, BNB has experienced a 2.59% decline in the last 24 hours, dropping from $714.11 to $696.45. This short-term downturn has left the coin with a market capitalization of approximately $100.29 billion.
Additionally, BNB’s trading volume has decreased by 12.54%, signaling a decline in market activity. Despite this, the coin’s circulating supply remains stable at 144 million BNB.
Recently, BNB tested a crucial support zone around $650, attempting a rebound after a sharp decline from its previous peak. If BNB manages to hold above this level, the price could build momentum for a possible breakout. However, failure to sustain this support might lead to further downward pressure, which traders must monitor.
Derivatives market and volume analysis
In addition to price action, BNB’s derivatives data provides further insights into market sentiment. In the past 24 hours, trading volume dropped by 26.36%, totaling $814.42 million, while open interest decreased by 4.36%, reaching $792.39 million.
These declines suggest reduced market participation during this period. However, an increase in options open interest by 31.61% indicates that traders are positioning themselves for potential price moves soon.
Currently, the long-to-short ratio for BNB is 0.8864; its value differs in exchanges like Binance and OKX since more long positions are opened for a BNB price increase. For liquidations, long liquidations have now surpassed short liquidations, as $579.48K worth of long positions were liquidated in the last 24 hours.
Technical indicators: RSI and MACD
Looking at the technical indicators, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) provide valuable insight into BNB’s momentum. The RSI currently stands at 45.81, indicating that BNB is neither overbought nor oversold.
The market is showing slight bearish momentum, with the RSI in neutral territory. A move above the 50 threshold would indicate increasing bullish sentiment, while a drop below 40 could signal stronger bearish pressure.
On the other hand, the MACD line is well above the signal line, indicating a dominant buy signal line. However, as the graph shows by narrowing histograms, this increase in reading momentum may be in the process of decline. If the MACD line sank below the signal line, it could mean that it is a bearish territory and might affect the price, lowering it further.
