Bullish Surge or Consolidation Looming?

BNB price may be preparing for a consolidation phase, as indicated by the stable number of transactions over the past week. Currently, BNB’s RSI is at a high level of 84, indicating an overbought situation, which may weaken the prospects for a price surge in the near term.

Confirming this, the EMA line provides strong support for a sustained period of consolidation, suggesting a more stable future market for BNB.

BNB transaction number remains stable

The number of BNB transactions has been fairly stable since the end of February 2024. Its price skyrocketed from $313 on January 1 to $632 by March 15. This represents a 101% increase in just over two months. BNB price then corrected and reached $507 on March 19th. After that, it made a new spike and reached $578 on March 27th.

Number of BNB transactions per day. sauce: dunes.

When compared to the top 21 cryptocurrencies by market capitalization, ignoring memecoins and stablecoins, BNB’s annual growth rate trails only NEAR, BCH, and TON.

The stable daily trading volume and uniform 7-day moving average demonstrate investors’ unwavering confidence in BNB. Even after posting notable gains this year, investors may continue to focus on BNB as it promises continued strong returns.

Read more: How to buy BNB and everything you need to know

BNB high RSI could hinder new rally

BNB’s relative strength index (RSI) peaked at 84, entering overbought territory. This means that the market may be overvaluing the asset at the moment. Such a high RSI often acts as a warning signal that the asset may not be able to sustain further growth in the short term. This happens due to the increased possibility of price correction.

BNB RSI 7D.
BNB RSI 7D. sauce: Santimento.

RSI tracks the speed of price changes and rates whether an asset is overbought or oversold on a scale of 0 to 100. BNB’s high RSI suggests large purchases, and along with stable trading volumes increases the likelihood of an impending consolidation.

At this RSI level, traders may speculate that BNB buying momentum has peaked, potentially capping any impending upside in the near term.

BNB price prediction: consolidation first or another push above $645?

The BNB price chart shows that the short-term exponential moving average (EMA) has just surpassed the long-term EMA. This is usually considered a bullish signal indicating that recent price momentum has been strong and could lead to further price increases.

BNB 4-hour chart and EMA line.
BNB 4-hour chart and EMA line. sauce: TradingView.

EMA lines are a type of moving average that give more weight to recent prices and are more sensitive to new price movements compared to a simple moving average. The short-term EMA has risen above the long-term EMA, suggesting that buyers are regaining control and could push prices higher.

Read more: Top 10 cryptocurrencies to invest in March 2024

If BNB maintains its current pace and avoids a consolidation, the price could challenge and break the $645 resistance. These outcomes depend on consistent market conditions and avoiding price stabilization. If a decline begins, BNB price could approach the support at $497.

Disclaimer

In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although BeInCrypto strives for accurate and unbiased reporting, market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions. Please note that our Terms of Use, Privacy Policy, and Disclaimer have been updated.

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