• Binance Coin [BNB] has been in a downtrend on the 4-hour chart, but the $300 mark is a strong psychological support level.
• The Open Interest showed bearish sentiment was prevalent, with long positions paying fees to short positions.
• The confluence of support at the $300 region will be attractive to aggressive buyers.
Binance Coin [BNB] Price Analysis
Bearish Momentum on H4
The four-hour chart showed Binance Coin in a downtrend after the rally to $330 in March. This was only a pullback after the large rally from $260 in early March, but the structure remained bearish on H4. The RSI also showed bearish momentum and had an edge over bullishness.
Psychological Support at $300
The higher timeframe charts showed that the $300 and $320 levels have been important in past months like August, September and October 2022, as well as further back in history. Hence, aggressive buyers can use a move into the $300-$305 range to bid BNB. However, if prices slide below this level it could open up downside targets of around $291 and then possibly even lower at $276.
Tether’s Dominance Fell
Tether’s [USDT] dominance fell from 8.24% on 11 March to 6.6% on 17 March which saw Bitcoin [BTC] and altcoins like Binance Coin [BNB] recording large gains as investors moved funds out of stablecoin back into crypto assets. With Bitcoin near its resistance at around 29k currently, speculators and investors could be sitting on sidelines anticipating potentially large volatility after compression seen on lower timeframes recently.
Realistic or Not: Market Cap in ETH Terms
Realistic or not here’s BNB’s market cap when compared against ETH terms – with 1 BNB being worth 0.0319 ETHs currently and 10 BNBs being worth 0.319 ETHs while 100 BNBs accounts for 3.19 ETHs today (17 April 2021).
The confluence of support just beneath could initiate a rally however it heavily depends on Bitcoin’s future performance which may leave some investors sidelined until more clarity is visible . If it does break down below the psychological support level of 300 USDT then downside targets could come into play otherwise bullish buyers may enter if it holds true above this point again