In recent days, Binance Coin (BNB) has experienced a downturn, encountering resistance around the $220 mark on September 18th, leading to a bearish tone in the week’s price performance. In parallel, the ongoing dispute between Binance and the U.S. Securities and Exchange Commission (SEC) continued to unfold.
Binance responded to the SEC’s legal action with a motion to dismiss, asserting that the regulatory body lacked the jurisdiction to instigate the lawsuit. Regrettably, BNB did not respond favorably to these developments, and the bulls struggled to uphold the $213 support level.
Interestingly, the lower bounds of the price range coincided with a bullish order block, which prompted a shift in market structure away from the bears approximately ten days ago. Consequently, the $204 zone was anticipated to serve as robust support, with a potential BNB rally expected upon retesting this level.
Despite these encouraging signals, the Relative Strength Index (RSI) remained unsupportive, suggesting that bearish momentum still exerted influence. Simultaneously, the On-Balance Volume (OBV) exhibited a downward trajectory since September 19th, indicating waning buying pressure in recent days.
Market Sentiment Presents a Contradictory Picture
Starting from September 22nd, BNB’s price has oscillated around the $210 range. Interestingly, Open Interest continued to climb, and the funding rate remained positive. These indicators pointed to active participation from buyers and hinted at a prevailing bullish sentiment among speculators.
Contrary to the OBV, the spot Cumulative Volume Delta (CVD) exhibited an upward trend over the past week. This divergence suggests robust buyer activity in the spot market.
From a technical standpoint, the $203-$207 range presents an attractive risk-to-reward buying opportunity. It’s important to note that a BNB price dip below $204 would invalidate this trading idea.
As Binance Coin navigates the intricate dynamics of regulatory challenges and market fluctuations, traders and investors closely monitor these developments, seeking potential opportunities for a market rebound.
