Altcoin
BNB: $710 or $603, which direction will the altcoin go?
- The price of BNB has fallen by more than 10% in the last seven days.
- Some parameters suggest a reversal of the trend.
Binance coin [BNB] Bears dominated the last week as the price of the coin dropped into double digits. However, at the time of writing, BNB was testing a crucial resistance level. A break above could trigger a bullish rally.
Let’s take a closer look at what’s going on.
BNB tests crucial resistance
CoinMarketCap data revealed that the price of BNB has fallen by more than 10% in the last seven days. The downtrend continued over the last 24 hours as the coin moved slightly lower.
At the time of writing, BNB was trading at $604 with a market capitalization of over $89 billion.
The decline in price action has made BNB a hot topic in the cryptocurrency industry, as is evident from its rising social volume.
But its weighted sentiment dropped sharply, meaning bearish sentiment around the coin was dominant in the market.
Source: Santimento
However, things could change in the coming days as the coin is testing a crucial resistance level.
AMBCrypto’s analysis of BNB’s daily chart revealed that the coin was testing its 50-day exponential moving average (EMA). Generally, the 50-day EMA acts as a support and resistance level.
Therefore, a break above that level usually results in a bullish rally.
On this occasion, if BNB manages to break through, investors could witness a massive price increase. This could allow BNB to recover $710 again.
Source: TradingView
Is a bullish breakout possible?
Since there was a possibility of a trend reversal, AMBCrypto analyzed Santiment’s data to see if the parameters supported such a possibility. We found that BNB’s Open Interest dropped along with its price.
A decline in the parameter suggests that the possibility of the ongoing price trend changing is high. Furthermore, BNB volume has also decreased, which suggests a turnaround in the future.
Source: Santimento
Interestingly, the coin’s Chaikin Money Flow (CMF) has also seen an increase and was above the neutral threshold at the time of writing. This hinted at a possible price increase.
However, the rest of the indicators were bearish.
For example, the MACD has shown a bearish edge on the market. The Relative Strength Index (RSI) continued to remain below the neutral mark, suggesting continued price declines.
Source: TradingView
Realistic or not, that’s it The market capitalization of BNB in terms of BTC
If BNB manages to initiate a bullish rally above its 50-day EMA, the coin would witness a liquidation high near $617. High liquidation often results in short-term price corrections.
A breakout above that level could allow the coin to touch $637 in the next week. However, if the downtrend lasts, BNB could drop to $603.
Source: Hyblock Capital