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- Rejection at a key price level could lead to another significant price dip for BNB.
- Speculators played the short game with an increase in selling positions.
Binance Coin’s [BNB] temporary bullish rally was rejected at the $225 resistance level to maintain the altcoin’s long-term bearish bias. With the BNB Chain experiencing dwindling network activity, it suggested that market participants could be looking at sub-$200 prices for BNB.
Read Binance Coin’s [BNB] Price Prediction 2023-24
Meanwhile, BNB’s price action remained in contrast to Bitcoin’s [BTC] gains over the past three days.
Bulls can’t scale $225 roadblock on the first attempt
Source: BNB/USDT on Trading View
BNB’s rebound hasn’t kicked off due to the constant decline of its trading volume. The On Balance Volume has dipped consistently since mid-June and moved lower in early August.
While the recent pump took the Relative Strength Index above the neutral 50, the sharp drop afterward from the 60-mark pointed to unstable demand.
A look southward highlighted the flurry of selling pressure on 17 August that flipped the key support level of $225 to resistance, establishing the bearish dominance on the higher timeframes.
However, bulls were able to curtail the bearish momentum, rallying from the nearby support level of $205. Although the rally stemmed the selling pressure briefly, bears were on hand to stand against any further gains.
With bears firmly in control, sellers can aim to hit the $205-$210 price level, due to BNB’s tendency to stay in a range after sharp price movements. Nonetheless, bulls still have the opportunity to reclaim the $225 support level and push on for more gains, if the trading volume picks up.
Sharp drop in Open Interest extended sellers’ advantage
Source: Coinalyze
BNB’s on-chain metrics presented interesting activities by market speculators. According to Coinalyze, the futures market reacted to the short-term pump on 29 August with a sharp drop in the Open Interest (OI).
How much are 1,10,100 BNBs worth today?
This hinted at speculators actively bidding for short positions with the anticipation of further price decline. Similarly, the Funding Rate remained largely negative since the start of August.
Combined, this highlighted the strong bearish dominance, with further price dips likely for CZ’s prized token.