- Binance Coin’s [BNB] price struggles to maintain bullish momentum despite the recent Greenfield Mainnet launch.
- Key support lies at the $205 range, but indicators hint at short-term bearishness.
The Greenfield Effect: High Hopes but No Bullish Bounce
On 17 October, the Binance Coin [BNB] Chain ecosystem unveiled the much-anticipated Greenfield Mainnet to the public, following a six-month development period. BNB, recognized as the native token for governance and gas, surprisingly didn’t witness a bullish surge in price post-announcement.
A preceding analysis from AMBCrypto highlighted BNB‘s market inertia for the preceding six weeks. Even though short-lived impulse moves did surface, the overarching market trend remained elusive. And this trend, or rather the lack of it, is forecasted to persist in the current week.
A Closer Look at BNB’s Price Dynamics
Recent market actions depict a subtle yet concerning picture for BNB. On 17 October, the currency broke past its recent higher low of $211.4. Further, it recorded a lower high at $213.9. An accompanying shift in the Relative Strength Index (RSI) dipping below the neutral 50 mark accentuates this bearish undertone.
This momentum shift doesn’t spell doom for the token just yet. The H4 bullish order block, lingering around the $205 mark and accompanied by the range low at $204, stands as a potential bulwark against further decline. For opportunistic traders, this zone could represent a lucrative buying gateway. However, it’s crucial to maintain a conservative stance, as a plunge below the $202 level might render such strategies ineffective.
Further insights from the Open Interest chart portend potential headwinds for BNB. The token’s funding rate nosedived back into the negative realm, showcasing the growing bearish clout in the futures market. With the Open Interest waning alongside the price, it’s evident that bullish sentiments are dwindling.
The spot Cumulative Volume Delta (CVD), a key metric reflecting order flow and trader intentions, offered a glimmer of hope for BNB on 15 October, rallying the token from $206 to $215. This optimism, however, was ephemeral. Over the last day, the CVD has taken a downturn, painting a picture of diminishing demand for BNB.
The coming days will be pivotal in determining whether BNB can thwart this looming bearish phase and reignite its bullish flames.