- BNB closed above resistance on 3rd June.
- This confirms a spike in buying pressure.
Binance Coin [BNB] closed above the upper line of its horizontal channel on 3rd June, signaling a surge in buying pressure.
An asset trends within a horizontal channel when its price consolidates within a range for a period of time. It happens when there is a relative balance between buying and selling pressures.
The channel has an upper line, which forms resistance, and a lower line, which represents support. BNB has faced resistance at $636.9 while finding support at $508.6.
Its rally above the upper line of the horizontal channel, which it has traded within since 13th March, represents a rally past the resistance level.
Will the uptrend continue?
AMBCrypto assessed some of BNB’s key technical indicators on a one-day chart and found a resurgence in bullish bias toward the altcoin.
For example, its Relative Strength Index (RSI) trended upward to be spotted at 65.54 at press time. This suggested a spike in buying pressure. It signals that market participants favored BNB accumulation over selling off their holdings.
Also, BNB’s positive Chaikin Money Flow (CMF) confirmed the uptick in the demand for the altcoin. This indicator tracks the flow of money into and out of the BNB market. A positive value above zero indicates market strength, suggesting liquidity inflow into the market.
As of this writing, BNB’s CMF was 0.12.
Further, readings from the coin’s Moving Average Convergence/Divergence (MACD) indicator showed a bullish crossover between its MACD line (orange) and its signal line (orange) on 3 June.
This upward intersection suggested that BNB’s short-term average was above its long-term average. It is a bullish signal that traders interpret as a sign to take long and exit long positions.
Source: BNB/USDT on TradingView
Confirming the current bullish trend, BNB’s funding rate across cryptocurrency exchanges was positive as of this writing. For context, it has been positive since 21st May.
Prior to that day, May had been predominantly marked by negative funding rates.
Source: Coinglass
Realistic or not, here’s BNB’s market cap in BTC terms
Funding rates are used in perpetual futures contracts to ensure that the contract price stays close to the spot price.
When they rise, it suggests a strong demand for long positions. It is considered a bullish signal.