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Binance Coin (BNB) struggles to sustain its uptrend as bulls defend the $637 level. Can BNB rebound to $758 amid rising TVL and a surge in long trader positions?
As the crypto market witnesses a slowdown this week, Binance coin struggles to hold above the $650 mark. Will this short-term weakness lead to a breakdown of the $637 support level and a retest of the 200-day EMA?
BNB Coin Price Analysis
On the daily chart, the BNB coin price shows a bullish breakout from a falling channel pattern, with a 4% surge on May 8. However, the rally peaked near $670, encountering strong overhead supply and heavy price rejection.
Binance Coin has shifted into a sideways movement and now risks a pullback to the $637 support level. This short-term struggle is accompanied by a significant drop in the RSI, falling from the overbought zone near 75 to the 14-day simple moving average.
As bullish momentum fades, the likelihood of a deeper correction increases significantly. However, due to the ongoing breakout rally, the 50-day and 200-day exponential moving averages are nearing a golden crossover.
This crossover could trigger a bounce in Binance Coin, presenting an entry opportunity for price action traders. Additionally, the breakout from the falling channel pattern projects a 25% potential rally from the breakout point, targeting the $758 level.
However, a drop below $637 could test the 200-day EMA at $615. If the decline extends below the broken support trendline near $600, the bullish breakout pattern will be invalidated.
Optimism in the Derivatives Market Suggests a BNB Rebound
Despite the short-term pullback, Binance traders remain optimistic about BNB. According to CoinGlass data, 66% of Binance traders currently hold long positions on the BNB coin, pushing the long-to-short ratio to 1.97 and reflecting strong market confidence.
DEX Volume and TVL Skyrocket on Binance Smart Chain
Supporting the bullish outlook for BNB, the Binance Smart Chain is witnessing a significant surge in both TVL and DEX volume. According to DeFiLlama, TVL has risen to $6.17 billion, while 24-hour DEX volume climbed to $2.51 billion as of May 15.
With this increase in DeFi activity, demand for BNB within the ecosystem is likely to grow.