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As bulls enter the market, BNB open interest approaches $400 million
The open interest of Binance Coin (BNB) approaches a value of $400 million as bullish market participants become more active.
Binance Coin price is at an inflection point, coiling up for its next move after an almost 7% downswing.
The token is starting the month with up to $368.77 million in open interest as bulls step in.
BNB could rise 5% if the demand zone successfully holds as support at $215.2, with prospects to breach the $231.2 hurdle.
Invalidation of the bullish thesis will occur if the altcoin decisively breaks below the $209.9 buyer congestion level.
Binance Coin (BNB) pricing is indicating an upcoming short-term increase as the network continues to negotiate regulatory uncertainty. Notably, the world's largest bitcoin exchange by trading volume is still battling the US Securities and Exchange Commission (SEC), Commodities and Exchange Commission (CFTC), and Department of Justice (DOJ).
Binance is anticipating a short-term rally
Binance Coin (BNB) may be poised for a run north, propelled by a bullish rebound. According to Santiment's Weighted Sentiment indicator, social volume for BNB has been steadily increasing over the previous week, with the vast majority of positive messages about the coin also improving.
BNB Weighted Santiment
Similarly, open interest in the token is notably high at the start of the month, approaching $400 million at the time of writing, at $368.77 million.
BNB Open Interest
A rise in open interest indicates an increase in the number of contracts with a widely discernible rising trend. With both open interest and price steadily rising, it indicates an oncoming uptrend.
Binance Coin price forecast as it continues to rise
Binance Coin may be due for an uptrend after testing the demand zone at $217.8, with a 5% climb to the $231.2 resistance level being the most likely step. This level of supplier congestion is critical because it served as a multi-month support level before turning resistance.
While a substantial climb above $231.2 would be great, the chances of an uptrend improving only with a decisive candlestick close above the 256.5 resistance mark.
The Relative Strength Index (RSI) is rising, indicating that momentum is building. Similarly, the Awesome Oscillator indicator's histogram bars are approaching the midline and may soon turn positive. This lends weight to the affirmative.
It is worth noting that the BNB price stays within a demand zone, an order block defined by strong buying, which raises the likelihood of an upside.
BNB/USDT 1-day chart
If the order block fails to hold as support and Binance Coin slips through, BNB price might fall below the $209.9 support level, stalling the upward or, in the worst-case scenario, invalidating the present bullish view.
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