Binance Coin (BNB) Bulls Could Not Defend the Breakout Past the $635 Resistance

Binance Coin [BNB] bulls could not defend the breakout past the $635 resistance. The prices were back at the $570 support zone at press time.

Binance Coin [BNB] began the month of June strongly, reaching highs of $716. This level marked the 23.6% Fibonacci Extension and also served as a technical resistance zone. Prices fell from here.

Naturally, the former range highs at $635 were expected to halt this bearish advance, but this was not to be. The mid-range level at $570 was tested as support and has held over the past week.

At press time, the bulls could not defend the breakout past the $635 resistance. Prices were back at the $570 support zone. The technical indicators highlighted bearish expectations.

The daily Relative Strength Index showed bearish momentum, as it was positioned at 40. The Chaikin Money Flow was at -0.05, which showed strong capital outflow from the BNB markets in recent days. Together, they indicated that further losses were likely.

The liquidity at the $550 and $520 regions is likely to attract prices before a bullish recovery.

Bearish activity was prominent, despite speculators’ anticipation

The Open Interest began a downtrend on the 6th of June. It fell drastically from $1.068 billion on that day to $618.2 billion on the 12th of June. This downtrend continued, with OI at $554 billion at press time.

The spot CVD also attempted to rally from the 19th to the 22nd of June but failed due to the lack of consistent demand.

However, over the past two days, the spot CVD has begun to rise slowly. The funding rate also picked up, which suggested that speculators might be turning bullish again.

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