According to the CEO of Binance, the 15th burning of Binance coins is expected in mid-April. This event reduces supply and is a long-term bullish development, although it is unlikely to have an immediate impact on price. At the time of writing, the NBB was hovering between the support level of $ 240 and the resistance level of $ 277, and sales volume has been slightly but noticeably higher than buying volume in the past few weeks.
Binance Coin 1-day chart
In the charts, after the strong performance in February, a consolidation phase was underway for the BNB. A decline to $ 200 was observed when Bitcoin fell from $ 61,000. Since then, Binance Coin has rallied to trade above the USD 270 mark again, but has not yet shown any signs of strong demand from buyers.
Technical indicators indicated a lack of definitive momentum behind the NBB. A breakout above $ 300 was attempted almost three weeks ago but is firmly pushed down. The $ 280-300 region has served as the supply region, and this must be turned around by the cops before any further surge above $ 300 can be made.
The RSI was lagging around the neutral 50 until it recently dropped to 38 and rebounded to 56. However, that alone is not an indication of a shift in sentiment towards the bullish trend. The OBV has been on the downtrend for a month. An influx of buyers is a necessity for the NBB to move higher.
The stochastic RSI was in the overbought territory and, along with selling pressure, could cause the BNB to return to $ 240. The trading volume also slowly decreased, which strengthened the notion of consolidation.
Funding rates for BNB have been very positive for Binance, FTX and Huobi, which shows that longs have been a crowded trade in the market for the past few days.
The USD 240 price level provides an attractive area to bid to buy BNB, while an increase above USD 277 and retesting that level can also be used to enter into long trades. Shorting Binance Coin on scalp deals could be profitable with a $ 280 rejection, with a tight stop loss above that level. A bullish bitcoin, however, increases the risk for this trade.
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