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

What is circulating supply?

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.

What is market capitalization?

Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.

What is trading volume?

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.

What is the funding rate?

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.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.