Binance Coin (BNB) Eyes Rally After Retesting Support, Bullish Momentum Builds

Binance Coin (BNB) is poised for a rally after successfully retesting its support level, rising 2.73% on Monday. Positive on-chain data and technical indicators suggest a potential 13% upswing if momentum holds.

Binance Coin (BNB) is gearing up for a potential rally after retesting and finding support at a key trendline on Sunday. The cryptocurrency saw a 2.73% rise on Monday and continues to trade higher during the Asian trading session on Tuesday. At the time of writing, BNB is trading at $534.70, up 1.5% for the day.

BNB Price Poised for Upswing

On Sunday, Binance Coin retested its previously broken descending trendline, drawn by connecting multiple highs since June 6, and successfully held above this support level. This development triggered a 2.73% increase the following day. If the support around $499.20 continues to hold, BNB could rally 13% to retest its August 23 high of $599.60.

Technical indicators are also signaling a potential continuation of the bullish momentum. The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart are approaching their neutral levels of 50 and zero, respectively. If these indicators flip over their neutral levels and maintain their positions, it would add further momentum to BNB’s recovery rally.

On-Chain Metrics Signal Bullish Sentiment

On-chain data further supports the bullish outlook for Binance Coin. According to Coinglass, BNB’s OI-Weighted Funding Rate stands at 0.0023%, indicating that long positions are paying shorts, a scenario often associated with bullish market sentiment. Additionally, the BNB long-to-short ratio is at 1.31, suggesting that more traders expect the asset’s price to rise.

Despite these positive indicators, traders should remain cautious. A daily candlestick close below $468.70 would invalidate the bullish thesis, potentially leading to a 14% decline as BNB could retest its August 5 low of $400.

Conclusion

Binance Coin’s recent price action and on-chain metrics point to a potential rally, with key support levels holding firm and technical indicators signaling bullish momentum. However, traders should watch for a close below critical support levels, which could reverse the current trend.

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