Why BNB Price May Fall With $500 Target
BNB price has failed to join the ranks of cryptocurrencies that have managed to post massive gains since late February. However, the altcoin managed to reach the $500 mark.
But in his view, BNB will stop short on the road before revisiting that milestone.
BNB investors can tap out.
The price increase of BNB did not impress the investors as much as other altcoins, as a result of which BNB owners lost their optimism. This shows that investors are losing weight. The measure is used to measure the general interest and sentiment of the investors.
In general, feelings of heaviness increase with more positive messages during periods of higher social intensity. On the contrary, dips occur when the social level is high, but the mood turns negative.
The latter conditions hold true for BNB as the weekly average sentiment is at a nine-month low.
Read more: How to buy BNB and everything you need to know
Secondly, the MVRV Z-score is not very favorable for the altcoin. The MVRV Z-score compares a cryptocurrency's market value to its perceived value, whether a signal is over or undervalued. Positive results indicate overvalued and negative values, helping investors gauge market sentiment and potential price outcomes.
As shown in the chart, BNB's MVRV Z-score of 2.73 is breaking the threshold. A breach of this level would indicate that the cryptocurrency is overvalued and sold by investors before BNB corrects significantly.
Read More: Binance Review 2024: Is It The Right Crypto Exchange For You?
BNB Coin Price Prediction: Decline is on the horizon.
The price of BNB Coin is trading at $485 at the time of writing, which is close to the two-year resistance level of $499. However, given the above developments, the likely outcome for BNB is a price drop.
A failed breakout would drag BNB down to $414, erasing most of the gains seen in the altcoin over the past month.
However, the BNB price appears as a golden cross on the 3-day chart. This extremely rare event has occurred for the first time since February 2023.
A golden cross is a bullish signal formed when the short-term 50-day crosses above the long-term 200-day moving average. This crossover indicates an increase in upward momentum and typically indicates a transition to a bullish trend.
Since this is continuous, the momentum of the energy can be sustained for a period of time. If this BNB price breaks the $500 mark and tests the price point as support, it will invalidate the bearish study.
The post Here's Why BNB Price May Fall With $500 Target appeared first on BeInCrypto.
