BNB hovers above $300 amidst rising bearish sentiment

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• The $300 level was crucial, but bulls were on the verge of losing this support.
• The Fibonacci extension levels gave an idea of where the prices could be headed next.

Binance Coin [BNB] has been in a downtrend since the latter half of April. Following the rejection from $350, the sellers have assumed the driving seat and the bearish trend of Bitcoin [BTC] has solidified in recent weeks. The final days of April saw high volatility, but the price action has settled since then.

Realistic or not, here’s BNB’s market cap in BTC’s terms

At the time of writing, Binance Coin’s prices were perched precariously above the $300 support level. It was a psychological as well as technical level of significance. However, the short-term momentum was in favor of the sellers.

The bullish order block was defended so far

Source: BNB/USDT on TradingView

Based on the move down from $350 to $301.4, a set of Fibonacci retracement levels was drawn. It showed the 23.6% retracement level at $312.9. Interestingly, Binance Coin has oscillated between $315 and $300 since 9 May, forming a short-term range.

This range formation came after a bullish order block on the 6-hour chart was tested. In a previous report, this zone was highlighted as critical for the bulls, but they have not yet managed to push prices higher. On the contrary, the sellers continued to dominate the market.

The outlook for Binance Coin was more bearish at press time. The lower timeframes showed a rise in selling pressure. The LTF support at $309 was also flipped to resistance. The RSI remained below neutral 50, and a move south would likely take BNB to $290 and $271.4. Such a move could be initiated if Bitcoin saw a wave of selling next week.

How much are 1,10,100 BNBs worth today?

A rise in Open Interest indicated bears had sway

Source: Coinalyze

Over the past few hours, the Open Interest rose as Binance Coin prices continued to slump. This showed active short sellers in the market and highlighted high conviction from the bears. This signaled strong bearish sentiment.

This finding was reinforced by the findings from the spot CVD chart. This indicator has been in a downtrend since last weekend and intensified over the past two days. Therefore, the selling volume was dominant and further losses were likely for BNB.