- Binance Coin has seen steady accumulation since March
- Swing traders can wait for a dip towards the mid-range mark to go long
Exchange token Binance Coin [BNB] saw a boom in on-chain activity on the Binance Smart Chain recently. The DEX volume on BSC saw an enormous hike in May, climbing to a remarkable $178 billion. However, bullish news on the fundamentals might not be enough to set BNB on a lasting uptrend in the coming weeks. Especially since it was trading within a range at press time.
The range formation, which spans from $531 to $725, has been in effect since December 2024. BNB has still not broken out beyond the range. In recent months, it saw an uptick in buying volume, and this sparked some hope among bulls.
BNB investors might not be enthused, but traders find opportunities
Source: BNB/USDT on TradingView
The market structure and trend of BNB were bullish on the 1-day chart. This could be useful information for swing traders, but long-term investors were likely to be frustrated by the long consolidation phase.
The mid-range level at $628 coincided with a bullish order block from November. This area has been respected since then, although it has served as both a demand and supply zone.
During the past 10 weeks, the OBV has been rising steadily on the 1-day timeframe, showing accumulation. This could propel a bullish move for BNB towards the $725 range high.
The RSI was at 49 and could slip lower, but this won’t be a big concern. The market structure was still bullish. A fall below the $63- mark would be the first sign of a bearish trend shift.
Source: Coinglass
The 3-month liquidation heatmap highlighted a sparsity of liquidation levels of notable size around the press time market price.
The $630 and the $700-zones are attractive targets, but their liquidity has not been as high as what we saw at $650 in early May. Hence, an explosive move would need more time to materialize.
Source: Coinglass
The 2-week chart captured the upper half of the range as a place where BNB swing traders can find plentiful opportunities. The magnetic zones at $640 and $690 would be the next price targets, in order.
Hence, BNB bulls can wait for a dip to $630-$640, to go long and take profits around the $690-mark. Adverse Bitcoin [BTC] momentum could ruin this setup and lead to extended losses below the $630 support zone.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
