Journalist
Posted:
- BNB is struggling to break past resistance, with Funding Rates suggesting indecision among traders.
- A drop below $640 could trigger more downside, while a push above $700 may signal bullish momentum.
Binance Coin [BNB] has been trading within a defined channel, facing resistance near the $700 mark while maintaining support above $620.
The asset’s price trajectory is showing signs of tightening volatility, but on-chain metrics suggest potential deviations that could define its next major move.
BNB: Resistance and support zones
The 12-hour chart for BNB revealed a symmetrical consolidation, with price action oscillating between a downward-sloping resistance trendline and a horizontal support level.
The 50-day Moving Average [MA] was at $640.2 at press time, acting as an intermediary support, while the 200-day MA at $674.1 reinforced resistance near recent highs.
Source: TradingView
BNB has struggled to break past the upper trendline near $700, indicating strong selling pressure at that level.
If the price decisively crosses this barrier, the next major resistance zone is around $740, which aligns with previous rejection points.
Conversely, if sellers dominate, BNB could test support at $620, with an extended decline bringing $580 into focus as a key demand zone.
Funding Rate and market sentiment
The BNB Open Interest-Weighted Funding Rate chart highlighted a recent trend of negative Funding Rates.
Historically, such declines indicate that short sellers are paying a premium, which could suggest heightened bearish sentiment.
However, the frequency of negative funding over the past two weeks suggests increased uncertainty among traders rather than a firm downtrend.
Source: Coinglass
If Funding Rates remain in negative territory while the price holds steady, it could set the stage for a short squeeze scenario, where excessive short positions fuel a rebound.
Potential price scenarios: Bullish vs. bearish
Bullish Case: If BNB manages to sustain momentum above $680 and breach $700 convincingly, a rally toward $740 could unfold.
Strong trading volume and renewed interest in Binance-related developments may support this upward move.
Bearish Case: A failure to hold $640 could intensify selling pressure, pushing BNB toward $620. A further breakdown could bring $580 into play, marking a significant loss of bullish control.
Final thoughts
BNB’s price action remains at a crucial inflection point, with both bullish and bearish possibilities still open.
Traders should monitor Funding Rate trends and resistance breakouts closely, as these could determine whether BNB heads for a breakout or slips into deeper correction territory.
Credit: Source link