• BNB breached a crucial psychological level of $220 on 17 August
• Indecision amongst players leading to range trading and potentially a bearish breakout
• Negative funding rates reinforce a bearish bias in the derivatives market
BNB Breaches Psychological Level
BNB saw three daily sessions close below $220 since 17 August. This breach cleared a crucial psychological level of $220 that stopped the June dump and was a bulls’ rescue during the December 2022 slump. Market indecision amongst Binance Coin [BNB] traders set the altcoin into range trading over the weekend (19-20 August). Despite this, Bitcoin [BTC] shed over $3000, about 10%, in a week.
Range Extension on The Cards?
At the time of publication, BNB’s Relative Strength Index (RSI) was flat in the oversold territory and On Balance Volume (OBV) dipped and moved sideways – Demand declined and stagnated. These readings suggest that there could be potential range-bound extension between $213 – $220 in the next few days. However, to tip bulls to target $230, it must mount above $224 for bullis breakouts or else risk further drops below $200.
Negative Funding Rates Persist
BNB’s funding rates have been worryingly negative for awhile now which reinforces bearish sentiment as seen from Cumulative Volume Delta (CVD) readings declining between 15-17 August until they flattened out on 18 August showing no players had absolute leverage.
Conclusion
Although it is unclear what direction BNB will take due to market indecision, negative funding rates suggest that bearish sentiment is strong and there may be potential for further drops below $200 if there is no bullish breakout above $224 soon.
Disclaimer
The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.