Altcoin
BNB Investors Remain Cautious: $618 or $550, Where Will the Altcoin Go?
- BNB is trading within a tight range as traders keep their hands.
- Its price can break out in either direction depending on market sentiment.
Binance coin [BNB] it has been trading near the 20-day exponential moving average (EMA) and the 50-day simple moving average (SMA) in recent days, signaling a period of market consolidation.
An asset’s 20-day EMA is a short-term moving average that reacts quickly to price changes. Reflects the average closing price of an asset over the last 20 days.
The 50-day SMA, on the other hand, is a long-term moving average that reflects the average closing price of an asset over the last 50 days.
When an asset’s price approaches these averages, it suggests that neither buyers nor sellers are dominating the market. This indicates that the asset price is not trading convincingly in either direction, but instead is moving within a narrow range.
BNB moves within a narrow range
AMBCrypto’s assessment of other technical indicators, including BNB Bollinger Bands, confirmed BNB’s tight price movements.
This indicator tracks market volatility and periods of consolidation. When the gap between the upper and lower bands of this indicator contracts, with the price of an asset in the middle, the market is in the process of consolidating.
BNB price movements observed on a daily chart showed that the altcoin has been set this way since April 4th.
Likewise, the coin’s Average True Range (ATR) has been declining steadily since the beginning of May. This indicator measures the average volatility of an asset over a specified period. When it decreases in this way, the price of an asset is said to be in the process of consolidating. At the time of writing, BNB’s ATR value was 25.3. It has fallen 14% since May 1st.
Furthermore, the BNB’s Relative Strength Index (RSI) has moved sideways since the beginning of the month. A “flat” RSI like this often implies a lack of strong buying or selling pressure in the market.
Source: BNB/USDT on TradingView
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What future for BNB?
If the bullish momentum increases and BNB breaks out of the tight range in an uptrend, the coin could strengthen to exchange hands at $618.
However, if positive sentiment collapses and bearish activity becomes significant, the altcoin could break support to trade below $556.
Source: BNB/USDT on TradingView