- BNB closed above resistance on June 3rd.
- This confirms a surge in buying pressure.
Binance Coin [BNB] On June 3, it closed above the upper limit of the horizontal channel, indicating increasing buying pressure.
An asset trends within a horizontal channel when its price remains stable within a range for a period of time. This occurs when there is a relative balance between buying and selling pressure.
The channel has an upper line that forms resistance and a lower line that represents support. BNB is facing resistance at $636.9 but is finding support at $508.6.
Since March 13, it has risen above the upper line of the horizontal channel, which represents a rally above a resistance level.
Will the upward trend continue?
AMBCrypto evaluated some of BNB’s key technical indicators on a one-day chart and found that the bullish bias towards the altcoin is growing again.
For instance, the Relative Strength Index (RSI) is trending up and is at 65.54 at press time, suggesting increased buying pressure, which indicates that market participants preferred to add to their BNB holdings rather than sell them.
Also, BNB’s positive Chaikin Money Flow (CMF) confirms the growing demand for the altcoin. This indicator tracks the inflow and outflow of funds into the BNB market. A positive value above zero indicates market strength and suggests an inflow of liquidity into the market.
At the time of writing, BNB’s CMF was 0.12.
Moreover, a reading of the coin’s Moving Average Convergence/Divergence (MACD) indicator showed a bullish crossover between the MACD line (orange) and the signal line (orange) on June 3.
This upward crossover suggests that BNB’s short-term average is above its long-term average, which is a bullish signal that traders interpret as a sign to enter and exit long positions.
BNB/USDT chart. Source: TradingView
Supporting the current bullish trend, at the time of writing, BNB funding rates across cryptocurrency exchanges were positive. By the way, it has been in the positive since May 21st.
Up until that point, May had been characterized primarily by negative funding rates.
Source: Coinglass
Whether this is realistic or not, here is the total market capitalization of BNB in BTC:
The funding rate is used in perpetual futures contracts to ensure that the contract price is close to the spot price.
When it moves up, it suggests strong demand for long positions and is considered a bullish signal.
