Binance Coin Fails To Reach $600 Level: What’s Next For BNB?

  • BNB repeatedly fails to breach $606 and $618 resistance levels.
  • Chaikin Money Flow at three-month low, indicating weak investor confidence.
  • Price could drop to $533 if uptrend support fails, or rally to $606 if $569 flipped to support.

Binance Coin (BNB) finds itself at a critical juncture as it grapples with persistent resistance levels at $606 and $618. For over two months, these price points have thwarted BNB’s attempts to break higher, leading investors to brace for potential bearish outcomes and adjust their positions accordingly.

The overall macro momentum for BNB appears weak, as evidenced by the Chaikin Money Flow (CMF) indicator. Currently at a three-month low, the CMF signals waning investor confidence, reminiscent of levels last seen in June.

This steep decline in the CMF suggests a significant outflow of funds from BNB, reflecting growing skepticism about the token’s ability to maintain its current price levels.

BNB market sentiment turns bearish

Market sentiment surrounding BNB has taken a decidedly bearish turn, as reflected in the negative funding rate. This metric indicates a prevalence of short positions in the futures market, with traders betting on further price declines.

The combination of negative funding rates and increased outflows paints a picture of widespread pessimism, potentially setting the stage for a self-fulfilling prophecy of lower prices.

Source: Coinglass

Despite these bearish indicators, BNB has maintained an uptrend since early September. While it failed to breach the $606 resistance last month, the altcoin continues to test its uptrend line as support. This resilience in the face of broader market weakness offers a glimmer of hope for BNB bulls.

Looking ahead, BNB’s price action hinges on its ability to hold the current uptrend line. A loss of this support could trigger a drawdown to the $533 level, a historical support that has withstood multiple tests. Conversely, a bounce off the uptrend line could propel BNB towards $606, provided it can flip the $569 level into support.

Source: https://thenewscrypto.com/binance-coin-fails-to-reach-600-level-whats-next-for-bnb/