BNB’s 10% price surge – Is it still on track for its April predictions?
  • BNB price action and Chaikin money flow are creating a bearish divergence.
  • Other key technical indicators point to a possible price decline.

Binance coin price surge last week [BNB]combined with the downward trend in Chaikin Money Flow (CMF), creates a bearish divergence and suggests a possible price reversal.

At the time of writing, BNB’s price was $586.according to coin market capthe altcoin’s value has risen nearly 10% in the last week.

During the same period, the CMF indicator evaluated on a 24-hour chart started a downward trend. This metric measures the flow of money into and out of an asset over a specified period of time.

A bearish divergence occurs when asset prices rise while the CMF craters. This difference indicates weak purchasing pressure despite rising prices. Downward corrections often occur when buying pressure wanes and buyers in the market are unable to sustain further price increases.

BNB 1 day chart

Source: TradingView

Should BNB holders expect a rebound?

A review of some of BNB’s technical indicators on the daily chart reveals that it may lose some of last week’s gains in the short term.

According to the readings of the Moving Average Convergence Divergence (MACD) indicator, the MACD line fell below the signal line on March 19th.

When the MACD line and the signal line cross downward, it is considered a bearish sign, suggesting that the short-term moving average of an asset is losing strength compared to the long-term moving average.

When traders spot this intersection, they view it as confirmation that market sentiment has shifted from bullish to bearish and that asset values ​​may fall due to increased selling pressure.

Since this intersection, BNB’s price has increased by 10%, but this only reflects general market performance. Its price increases are not backed by significant demand.

The Money Flow Index (MFI) indicator returned a value of 48.18 at the time of writing, showing a downward trend but with selling pressure outweighing buying activity among market participants.

BNB 1 day chart

Source: TradingView

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no need to be alarmed

While BNB may look like it is poised to lose some of its profits, volatility markers indicated that significant price movements in either direction are unlikely.

The gap between the upper and lower bands of the coin’s Bollinger Bands (BB) indicator was quite narrow. This means that price fluctuations are relatively low. To support this, the coin’s Bollinger Band Width (BBW) was on a downward trend at the time of writing.

BNB 1 day chart

Source: TradingView

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