- Binance Coin (BNB) experienced a 4% price drop after reaching an all-time high on June 6.
- Despite this, bullish market sentiments appeared to support the key level at $635.
- The altcoin faced a resistance around the $712 price point, leading to profit-taking activities.
Binance Coin (BNB) recently hit an all-time high but has seen a 4% pullback due to profit-taking. Can the bulls maintain support at $635?
Bulls attempt to defend key support level
Following a recent increase in selling pressure, BNB’s price has drifted towards a significant breakout level of $632. However, market bulls appeared ready to defend this crucial support level. This was evidenced by the ongoing accumulation of the asset by traders.
The Relative Strength Index (RSI) and Money Flow Index (MFI) for BNB provided additional insights. At the time of writing, BNB’s RSI stood at 70.25, with an MFI value of 68.15, indicating sustained buying pressure despite the recent sell-off.
Furthermore, BNB’s Directional Movement Index (DMI) showed the positive directional index (green) surpassing the negative directional index (red), signaling robust bullish strength. The Chaikin Money Flow (CMF) for BNB was 0.21, suggesting an inflow of liquidity and market confidence in the asset’s future prospects.
Open interest climbed to a multi-year high
On June 7, BNB’s Futures open interest reached a three-year peak of $1.12 billion, the highest level since May 2021. Comparatively, XRP’s Futures open interest has surged by 70% since the start of the month.
BNB’s open interest measures the total number of active Futures contracts, and an increase indicates heightened market activity and new positions being opened by traders.
Additionally, since May 21, BNB’s futures have consistently recorded a positive funding rate. This suggests that the new market participants are primarily opening long positions, an optimistic indicator following a period of negative funding rates.
Market Sentiment and Future Outlook
Despite a brief retracement, the overall market sentiment for Binance Coin remains bullish. The defending of key support levels and the rise in Futures open interest reflect traders’ confidence in BNB’s continued performance. Indicators such as RSI, MFI, and DMI all point to a prevailing bullish trend, reinforcing optimistic forecasts for the altcoin.
Furthermore, the positive funding rates across exchanges suggest that traders are favoring long positions, anticipating further upward movement in BNB’s price. This dynamic could drive the asset’s value higher in the coming weeks, provided that market conditions remain favorable.
Conclusion
While Binance Coin experienced a slight price correction after achieving a new high, the resilient support at $635 highlights ongoing bullish sentiment. Indicators like RSI, MFI, and funding rates align to suggest potential for further gains. With the market interests and open contracts rising, BNB appears poised for continued positive momentum.
