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The buying strength at the $594 support level brought an end to the selling pressure on Binance Coin (BNB) over the past 48 hours.
Earlier BNB buyers had tried to break above the $618 resistance and push for a new all-time high (ATH) but the selling pressure was still present at the level that mitigated the bullish run-up.
This led to a 5% drop over the period but buyers were able to hold firm at the critical support level to maintain the uptrend. Can buyers use this momentum to scale the resistance and hit a new ATH?
Capital Inflows Remained Rock Solid
The inflow/outflow of capital in the short and long term is critical for the price action of any cryptocurrency with the Chaikin Money Flow (CMF) serving as a key indicator of net inflows and outflows.
Analyzing the capital inflows for BNB on the four-hour timeframe showed that inflows had been positive over a 20-day period, reaching a peak of +0.43 before dipping to its current level of +0.12.
Along with the Relative Strength Index (RSI) hovering around the neutral 50 mark, despite the sell-off, this helped to strengthen the bullish conviction in the short to medium term.
A full close of the four-hour candle above the $594 support level would serve as an entry signal for new long positions with targets at $620 - $640. With sufficient buying pressure, this target could be surpassed and see BNB hit a new ATH.
Binance Looking to Increase Its Market Share
A recent announcement shared on the official Binance page encouraged small to medium crypto projects to apply for official listing on Binance.
With different listing methods available such as the Launchpool, Megadrops, etc, it is bound to drive demand for BNB which is usually staked to receive free tokens of new projects listed on Binance.
This could further strengthen the bullish price action and see BNB go on a sustained bullish pump.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
