- BNB recovers on Friday to $650 after Thursday’s crash
- Technical analysis shows bullish EMA alignment with potential to retest $700 resistance
- Derivatives data reveals bearish sentiment with $2.18 million in liquidations.
Binance Coin has mounted a modest recovery following Thursday’s brutal market selloff, climbing to reach $650. The bounce has been anchored by support at the 100-day exponential moving average around $633, providing a technical foundation for the current upward movement.
However, BNB still needs to overcome Thursday’s 4.42% decline to fully restore bullish confidence among traders.
BNB’s ability to hold above the 100-day EMA has prevented a deeper correction that could have tested lower support zones, but the token faces multiple resistance levels that could cap further upside potential.
The recovery comes amid broader cryptocurrency market stabilization, though the sustainability of this bounce remains questionable given mixed technical signals and deteriorating derivatives market conditions.
BNB Technical Setup Favors Cautious Optimism
Daily chart analysis reveals BNB’s ongoing struggle to reach the psychologically important $700 level, which has acted as a stubborn ceiling for recent price action. The token has surrendered over 1% during the past week and an additional 2.5% this week before Friday’s recovery attempt. Despite these setbacks, the current price structure maintains some bullish characteristics.
The intraday rally has pushed BNB above both the 100-day EMA at $633 and the 50-day EMA at $642, creating a positive short-term setup. The alignment of the 50-, 100-, and 200-day EMAs continues to signal an underlying bullish trend. However, this structure faces testing from recent selling pressure.
RSI momentum indicators show signs of improvement after briefly dipping below the midpoint level. A sustained move above 50 on the RSI could provide additional confirmation that the recovery has legs and might challenge higher resistance levels. The previous falling channel breakout pattern remains intact, suggesting the broader uptrend hasn’t been completely compromised.
A daily close above the 50-day EMA at $642 would increase the probability of BNB making another attempt at the $700 psychological barrier. Success at this level could open the door for further gains, while failure might result in renewed selling pressure toward lower support zones.
Despite the price recovery, derivatives market data paints a pessimistic picture for BNB’s near-term prospects. Open interest has contracted 3.61% to $757.70 million, indicating reduced trader participation and potentially weakening conviction among market participants. This decline in engagement often precedes additional volatility.
Liquidation data over the past 24 hours reached $2.18 million, primarily affecting long positions and highlighting the aggressive nature of Thursday’s selloff. The long/short ratio has dropped to 0.7361, indicating a shift toward bearish positioning among leveraged traders who are positioning for potential further declines.
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