BNB Price Forecast: Technical outlooks favors bulls
|- Binance Coin price finds support and bounces off the 50-day EMA at $573.3.
- BNB’s long-to-short ratio increases sharply above one, suggesting more traders anticipate a rise in the price.
- A daily candlestick close below $573.3 would invalidate the bullish thesis.
Binance Coin (BNB) price increases to around $593 on Thursday after retesting and bouncing off a key support level on Wednesday. BNB's technical outlook suggests that further recovery is on the cards, while the coin’s long-to-short ratio also indicates that traders anticipate a rise in the price.
BNB Price Forecast: Finds support around 50-day EMA
Binance Coin found support around the 50-day EMA at $573.3 on Wednesday after facing rejection from the daily resistance level of $612.5 on Monday. At the time of writing on Thursday, it trades slightly higher, around $592.3.
If the 50-day EMA continues to hold as support and BNB closes above $612.5, it would create a higher high for the short-term uptrend. In such a scenario, the next target could be the June 10 high of $674.8.
The Relative Strength Index (RSI) on the daily chart bounced off its neutral level of 50 and currently trades at 54, indicating that bulls still have room for a recovery rally.
BNB/USDT daily chart
Coinglass’s data also aligns with the bullish outlook. BNB’s long-to-short ratio is at 1.05 on Thursday, the highest level in one month and rising from 0.91 on Wednesday. This ratio reflects bullish sentiment in the market, as the figure above one suggests that more traders anticipate the price of the coin to rise.
BNB long-to-short ratio chart. Source: Coinglass
However, if BNB closes below the 50-day EMA at $573.3 and breaks below the descending trendline (drawn by joining multiple low levels from early August), the bullish thesis would be invalidated. In such a scenario, BNB would extend the decline by 6% to retest its October 3 low of $534.3.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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