Key Takeaways
Like many altcoins, BNB has faced a significant decline, especially after failing to break through $700 mid-month. Despite this, traders remain optimistic, hoping for another successful breakout attempt.
Currently, BNB is trading around $612. With resistance proving strong and broader market conditions remaining bearish, this analysis checks whether BNB will move in the direction traders desire.
Bullish Sentiment Returns for BNB
BNB’s price reached a new all-time high in January. At that time, the altcoin hinted at a possible rally to $800.
But that did not happen as the price crashed earlier this month, with many long positions liquidated. On Feb. 13, BNB attempted the run at $800 again but faced rejection as it struggled to breach higher than the $700 mark.
However, the Long/Short ratio shows traders believe the recent decline is temporary. The Long/Short ratio acts as a barometer of investor sentiment.
When the ratio is below 1, it indicates more shorts than longs, suggesting a bearish sentiment.
However, Coinglass data shows the ratio has risen above 1, signaling a shift toward more long positions than shorts.
Historically, when this happens, as long as the long positions are not overheated, BNB jumps.
Therefore, if history rhymes with the current outlook, BNB’s price will likely retest the $700 mark in the short term.
Additionally, the cryptocurrency’s Weighted Sentiment has turned positive.
This metric reflects whether the majority of comments are optimistic or pessimistic.
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When positive, it suggests a more favorable outlook, and in this case, the metric has risen above the negative zone.
But if it is negative, it means that the sentiment is bearish. Thus, if the trend continues, demand for BNB could increase, potentially triggering a price rise.
BNB Price Holds Support at $600
On the 4-hour chart, BNB’s price has broken below the horizontal support of the descending triangle. This decline intensifies the correction around the cryptocurrency.
Amid this drop, the chart also shows a death cross formation. A death occurs when the longer Exponential Moving Average (EMA) slides below the shorter one.
As seen below, BNB has dropped below the 20 and 50 EMAs. At the same time, the 20 EMA (blue) has dropped below the 50 EMA (yellow).
However, the cryptocurrency seems to have found support near $600, indicating that it could rebound. As of this writing, this potential bounce is yet to be valid, and a break above $625 would need to confirm the bias.
If the price rises above $625, an upward move to $655 could follow. In addition, increasing buying pressure could lead to the cryptocurrency’s value reaching $690.
On the flip side, if BNB’s price falls below $590, this might not happen. In that case, the cryptocurrency’s value might decline to $560.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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