- Binance Coin (BNB) remains range-bound despite a breakout attempt, with weak buying pressure limiting its upward momentum.
- Traders should monitor key indicators like OBV and Open Interest for signs of a decisive move.
Binance Struggle Within a Range
Binance Coin (BNB) has been in a range-bound phase for the past five months, despite an initial breakout attempt in November. While the exchange token managed to surge past the mid-range resistance at $630, the lack of strong buying pressure hindered any sustained upward momentum. As Binance traders and investors keep a close watch, the market sentiment appears to be transitioning from fear to cautious optimism.
Price Movement and Range Formation
BNB’s recent price action has seen it establish a fresh range (white) after failing to maintain the breakout from its previous range (yellow) in November. This has led to renewed concerns among traders. Although there is a bullish outlook, with a potential move toward the range high of $720, the buying momentum has been lackluster.
Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, highlighted that BNB has maintained a correlation with Bitcoin and Ether in terms of returns and volatility since May 2021. His prediction that Binance could reach $2,775 by the end of 2028 has generated mixed reactions, with some viewing it as an overly optimistic forecast given the current range-bound behavior.
Key Indicators to Monitor
Traders should closely observe the On-Balance Volume (OBV) indicator, which has shown limited buying pressure despite the bullish breakout. A strong move above the local OBV resistance (orange) could reinforce bullish sentiment.
Additionally, Coinalyze data on spot demand and Open Interest (OI) has indicated that the rally above $630 was backed by steady demand. However, a decline in OI suggests profit-taking among long positions, which could prevent a sustained upward move.
What Lies Ahead for BNB?
BNB’s long-term holder NUPL metric, which recently corrected to 0.097 before rising above 0.25, reflects a shift from fear to cautious optimism. However, the range-bound price movement and limited capital inflows signal that BNB might continue to trade within a range in the near term. Traders should remain vigilant, watching for a decisive breakout or breakdown before making any significant moves.
