Binance Coin (BNB) struggles to sustain its uptrend as bulls defend the $637 level. Can BNB rebound to $758 amid rising TVL and a surge in long trader positions?
As the crypto market witnesses a slowdown this week, Binance coin struggles to hold above the $650 mark. Will this short-term weakness lead to a breakdown of the $637 support level and a retest of the 200-day EMA?
BNB Coin Price Analysis
On the daily chart, the BNB coin price shows a bullish breakout from a falling channel pattern, with a 4% surge on May 8. However, the rally peaked near $670, encountering strong overhead supply and heavy price rejection.
Binance Coin has shifted into a sideways movement and now risks a pullback to the $637 support level. This short-term struggle is accompanied by a significant drop in the RSI, falling from the overbought zone near 75 to the 14-day simple moving average.
As bullish momentum fades, the likelihood of a deeper correction increases significantly. However, due to the ongoing breakout rally, the 50-day and 200-day exponential moving averages are nearing a golden crossover.
This crossover could trigger a bounce in Binance Coin, presenting an entry opportunity for price action traders. Additionally, the breakout from the falling channel pattern projects a 25% potential rally from the breakout point, targeting the $758 level.
However, a drop below $637 could test the 200-day EMA at $615. If the decline extends below the broken support trendline near $600, the bullish breakout pattern will be invalidated.
Optimism in the Derivatives Market Suggests a BNB Rebound
Despite the short-term pullback, Binance traders remain optimistic about BNB. According to CoinGlass data, 66% of Binance traders currently hold long positions on the BNB coin, pushing the long-to-short ratio to 1.97 and reflecting strong market confidence.
DEX Volume and TVL Skyrocket on Binance Smart Chain
Supporting the bullish outlook for BNB, the Binance Smart Chain is witnessing a significant surge in both TVL and DEX volume. According to DeFiLlama, TVL has risen to $6.17 billion, while 24-hour DEX volume climbed to $2.51 billion as of May 15.
With this increase in DeFi activity, demand for BNB within the ecosystem is likely to grow.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
