• Binance Coin rebounds above key EMAs, aiming for the $700 psychological level.

  • RSI and EMAs indicate potential bullish momentum despite recent market volatility.

  • Derivatives market shows rising bearish sentiment and declining open interest in BNB.

The crypto market recently crashed hard. Yet, Binance Coin refuses to stay down. Like a fighter on the ropes, BNB claws back with a sharp bounce. Now, all eyes focus on one question: can this momentum drive BNB toward $700, or will a hidden trap pull it lower? Traders, brace yourselves. This battle between bulls and bears is far from over.

https://twitter.com/LiquidoOnCrypto/status/1930893239869112747 BNB Battles Key Levels Amid Recovery

BNB surged 2% on Friday, reaching $643. This rebound follows Thursday’s harsh 4.42% plunge. The recovery, supported by the 100-day EMA at $633, signals renewed bullish interest. Yet, the path ahead looks challenging. The daily chart paints a picture of struggle near the $700 psychological level. Last week, BNB dropped over 1%. This week, another 2.5% slide threatened its upward climb. However, Friday’s intraday bounce offers hope, keeping the coin above critical support zones.

Currently, BNB trades at $644, outpacing the 50-day EMA at $642. This position strengthens the bullish outlook. The RSI indicator also hints at a potential uptrend. After briefly dipping below mid-levels, the RSI line now turns upward. A further rise would confirm bullish momentum. Meanwhile, the 50-, 100-, and 200-day EMAs align positively. This alignment often signals an ongoing bullish trend. If BNB closes above the 50-day EMA, chances improve for a push toward $700.

Derivatives Market Signals Mixed Sentiment

Adding to the optimism, BNB maintains a breakout rally from a falling channel pattern. The coin dodged a deeper correction, which could have derailed the recovery. BNB’s spot market shows strength, but the derivatives market whispers caution. Despite Friday’s recovery, bearish sentiment gains ground among traders. Open interest has dropped 3.61%, now standing at $757.70 million.

This decline reflects waning interest from bullish traders. Moreover, liquidations surged to $2.18 million in the past 24 hours. Many bullish positions faced a brutal wipeout. Short sellers sense opportunity. The long-to-short ratio fell to 0.7361, revealing a spike in short positions. Additionally, the funding rate plummeted to 0.0178%. Bears now pay a premium to maintain their bets.

If BNB slips below the 200-day EMA at $624, expect stronger selling pressure. A fall below this level may trigger a drop to $600, or even the $554 support zone. For now, Binance Coin holds firm. Bulls aim for a daily close above key EMAs. Success here may fuel a rally toward $700. But the road remains rocky, with short sellers lurking in the shadows.