Trading strategy for Binance Coin (BNB) after the breakout

Key breakout points

Binance Coin (BNB) faces a test of key price levels in the near term. A breakout above $551.27 could bring further gains, while a break below $520.43 could signal greater downside risks.

Recent Trends

Since hitting its all-time high in early June, BNB has been trending bearishly, with prices breaking below major support levels. It is currently trading around $534, down nearly 2% in the past 24 hours.

Short-term expectations

Upside scenario: If BNB can break through the $551.27 (50 EMA) resistance level and sustain above $541.00, it could test $591.91. Downside scenario: If it fails to hold $541.00, it could drop to around $490.08 and $464.14.

Technical Indicators

The RSI (Relative Strength Index) is 47.79, indicating a neutral market sentiment with no clear bullish or bearish trend. The 20-day EMA ($548) was recently breached but encountered strong resistance.

Derivatives Market Sentiment

The 24-hour long-short ratio is 0.9109, slightly biased towards the bearish side. The long-short ratios of OKX and Binance show strong bullish sentiment at 1.8703 and 1.91, respectively. Open interest fell 3.26% to $496.95 million, indicating some traders closing their positions. The volume increased 50.70% to $978.57 million, indicating an uptick in market activity.

Conclusion

It is crucial to keep a close eye on the trend of Bitcoin for the trend of BNB as the two are highly correlated. In the short term, BNB's performance will depend on whether it can stabilize above key support levels.

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