Binance Coin Price Breaks Resistance – Will It Hold?
Binance Coin (BNB) recently broke above major resistance at the 20-day Moving Average (EMA). However, the buying pressure suggests that an attempt to retest the weakening levels will fail.
This analysis explains how the altcoin is set to throw off some of its gains over the past week.
Binance Coin rose above the resistance, but it is contained here.
Over the past seven days, BNB's price has risen 8%, surpassing the 20-day EMA on Wednesday. This moving average, which reflects the coin's average price over the past 20 trading days, has established a resistance level at $524.50 since August 26.
In bearish conditions, the 20-day EMA often acts as a key resistance point. BNB's decline since August 26 shows this, as it repeatedly tried to break above the $524.50 level before finally failing.
BNB successfully broke above the $524.50 resistance on Wednesday, but this gain may be temporary. Despite last week's price rally, BNB's Chaikin Money Flow (CMF) turned lower, indicating weakening buying pressure, which could limit further advances.
Read more: How to trade Crypto on Binance Futures
The CMF, which measures the flow of money into and out of the market, has fallen below the zero line, indicating a bearish divergence. This difference indicates that the BNB price increase is not supported by significant buying volume. Despite recent price increases, the lack of significant capital inflows suggests that the rally may not continue.
BNB price prediction: carry bias is important.
Despite recent price increases, bearish sentiment continues to weigh on BNB, reducing market confidence. The coin's weighted sentiment, a measure of overall market sentiment, stands at -0.52 at press time, indicating widespread pessimism.
When the property weight sentiment falls below zero, it indicates that social media conversations are dominated by negative emotions such as fear, uncertainty, and doubt. As buying pressure weakens, BNB may reverse course and retest the 20-day EMA.
If it fails to hold this level, the price may drop to $400. BNB last traded at this level in 2018. On August 5, the crypto market saw more than $1 billion in liquidity.
Read More: Binance Coin (BNB) Price Prediction 2024/2025/2030
However, if new demand reappears, it could push BNB's price to $589.90, undermining the bearish assumptions above.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
