Altcoins
BNB’s Next Milestone: Will It Surpass $600 or Should You Prepare for a Plunge?
- The BNB price is currently moving in a descending triangle.
- Demand for the altcoin must increase for it to rise above the upper line of this triangle.
Binance Coin [BNB] has been trending downward since its price peaked at $612 on May 27 to form a descending triangle. At the time of writing, the altcoin was trading at $593.11, recording a 3% price decline over the past three days.
BNB at a crossroads
At its current price, Binance Coin is trading slightly below the lower line of the descending triangle, which provides support.
For a rally towards the upper line of this triangle (resistance level) to occur, there must be an increase in buying pressure.
In the current market, readings from key BNB momentum indicators showed that neither buyers nor sellers were exerting enough pressure to steer the trend in their direction.
BNB’s Relative Strength Index (RSI) was 49.50, while its Money Flow Index (MFI) was 56.60. A combined reading of the values of these indicators showed that the price movement is balanced between gains and losses, with neither bears nor bulls having clear dominance.
This consolidation was confirmed by the Average True Range (ATR) of the BNB, whose value has fallen by 23% since May 23.
This indicator measures market volatility by calculating the average range between high and low prices over a specified number of periods.
Source: BNB/USDT, TradingView
When it falls in this way, it suggests that the price of an asset is becoming less volatile and the market is entering a consolidation phase.
BNB bulls have a chance
Although there is an apparent balance between supply and demand in the BNB market, AMBCrypto’s assessment revealed some indicators confirming the altcoin’s bullish bias.
For example, BNB’s Chaikin Money Flow (CMF) was above its zero line at press time. This indicator measures how money flows into and out of the BNB market. At 0.05, BNB’s CMF suggested that there was still demand for the altcoin.
BNB’s Parabolic SAR readings confirmed this trend. At the time of writing, the dots that make up this indicator were below the price of BNB, hinting at the possibility of a near-term price surge.
Read Binance [BNB] Price prediction 2023-2024
Finally, BNB is trading slightly above its 20-day exponential moving average at its current price. This means that its current price is higher than its average price over the last 20 days, albeit with a small difference.
Source: BNB/USDT, TradingView
This bullish signal suggests that traders may be slowly accumulating the altcoin.