- The growth of liquidity on the BNB channel has been significant, with a rally at $ 730 which is possible on the graphic
- The feeling on the market has indicated that a downward force exists, but the volume of purchase could reverse this
For the first time in more than a month, BNB recorded bullish gains on graphics, the crypto of almost 2% in 24 hours. This, after a previous downward trend, precipitated losses of almost 17% among investors.
This gathering could mark the start of a major decision, especially if BNB crosses a critical resistance line and the sale pressure on the derivative market is cool. Therefore, it is worth exploring the potential movement of BNB in depth.
Liquidity inputs strengthen the BNB price movement
According to Ambcrypto’s analysis, there were notable entries in the BNB chain, with the same intensification recently. These entries not only contributed to its price rally, but also stimulated an increase in the total locked value (TVL).
TVL measures the amount of BNB deposited and locked on different protocols on the BNB chain. A hike suggests that more investors lock their assets, indicating confidence in a potential price rally.
Source: Defillama
Between March 12 and 15, BNB Chain TVL jumped $ 496 million, representing the amount of BNB locked in the protocols. Also, the scale of these Liquidity inputs can be associated with an increase in active addresses during this period.
At the time of writing the time of the editorial staff, active addresses culminated at 1.1 million after reaching a monthly pace of 959,200 on March 8, the number of transactions affecting 4.5 million. The growth of these measures, as well as price and TVL, have referred to the domination of buyers through the market.
BNB faces keys resistance
The overvoltage of the aforementioned prices pushed BNB to a resistance line which has been in training since mid-February. In the last two times when the price has contacted this resistance, it has led to a drop at all levels.
If he sees a violation above this level, there is a good chance that the asset will record gains of 23.48%, climbing up to $ 732.
Source: tradingView
The technical indicators on the graph have alluded to the potential of a market rally. At the time of the press, the relative resistance index (RSI) and the divergence of Mobile Average Convergence (MacD) alluded to a Haussier scenario for Altcoin.
The RSI daily movement also revealed that the assets could continue to rise upwards. Especially since the RSI seemed to get closer to the purchasing area – above 50.
Source: tradingView
The MacD has also formed a classic golden cross motif, which occurs when the Blue MacD line crosses the Orange signal line.
Such a scheme generally precedes an upward decision on the market. If this happens, a BNB break could occur in the short term.
Data on derivatives show a mixed feeling among traders
Despite a high bullish feeling on the market, some traders have sold. At the time of writing the time of writing, the interest open for term contracts and options dropped by 2.30% and 1.56%, respectively.
A decreased interest means that unstable contracts on the derivative market could potentially be completed by short traders anticipating a drop in prices. This usually stops the price movement upwards or influences depreciation on graphics.
Source: Coringlass
However, derivative merchants on Binance and OKX continued to buy, with long -standing flashing readings of 1.43 and 2.18. When this ratio is greater than 1, it means more purchase than sales. And, the greater it is more than 1, the higher the purchase volume on the market.
If traders derived from these scholarships continue to buy, the sale pressure of other cohorts on the derivative market would remain minimal. It is only then that the price of BNB can break out on the graphics.
