• Binance Coin [BNB] has been on the path to recovery since late June.
• Price action showed signs of bullishness, but $265 was a critical resistance.
• The contraction in price action was accompanied by a rising OBV, which showed steady buying pressure.
Signs of Bullishness in BNB Prices
Binance Coin [BNB] has been on the path to recovery since late June. Buyers were able to defend the $230 level and forced BNB to form higher lows thereafter. Yet each foray past the $250 mark was met with rejection, showing bulls were not yet strong enough to breach the resistance. Price action showed signs of bullishness, but $265 was a critical resistance.
On-Chain Analysis Shows Bullish Intent
The contraction in price action was accompanied by a rising OBV, which showed steady buying pressure. The RSI hovered near the neutral 50 mark for most of July, showing there was a lack of heavy momentum in either direction. The mean coin age uptrend showed that BNB was accumulated on-chain and could be an indication that buyers were accumulating it in anticipation of a bullish breakout. The MVRV ratio also showed that BNB was severely undervalued compared to its market cap, reinforcing this bullish bias.
Is A Breakout Imminent?
Swing traders and positional traders have their focus on the daily or higher timeframe charts and do not yet see an attractive buying opportunity for BNB despite strong losses back in June indicating long-term bearish sentiment for this asset class overall. However, with the presence of buying pressure over the past month combined with climbing OI signaling bullish sentiment in the market, it is possible that price action will soon indicate a breakout past $250 soon if bulls can muster up enough strength against bears at this level.
What Does This Mean For Investors?
While there are indications that prices may break out above $250 soon due to increasing bullish sentiment and buying pressure, investors should still be cautious as there is no guarantee that this rally will occur or be sustained once it does happen if it does at all due to potential resistance levels present at these levels as well as other external factors such as regulatory changes which could affect prices significantly.. As such, investors should perform their own research before making any investment decisions based on information provided here or elsewhere online about Binance Coin’s potential performance going forward.
Conclusion
Overall, while prices did not have a strong uptrend recently and remain below key resistances like $265, there are still some positive indicators pointing towards potential future gains for Binance Coin [BNB]. With increasing buying pressure and rising OI signaling bullish sentiment in the market along with attractive valuations indicated by various metrics such as MVRV ratios suggesting further upside potentials ahead for this asset class investors interested in investing into cryptocurrencies should keep an eye out on Binance Coin’s performance going forward as it may prove to be an interesting option from both short-term trading perspective and long-term holding perspective depending upon one’s risk appetite and investment goals alike .
