BNB wishes to cross $600, but why the altcoin can drop to $550 instead
  • A bullish invalidation could send BNB down to $561.
  • Funding rates and sentiment are negative, suggesting a bearish bias.

Binance [BNB] There is a possibility of a breakout attempt following the 4-hour chart. However, AMBCrypto’s analysis reveals that this effort may be in vain.

One of the reasons for this prediction is the Exponential Moving Average (EMA). This indicator measures the direction of the trend over a period of time.

At the time of writing, BNB changed trades at $586. However, the 20 EMA (blue) and 50 EMA (yellow) were in the same place. The EMA position indicated that the bulls and bears were hesitant to dictate price action.

Therefore, BNB is likely to trade within a narrow range unless a crossover occurs.

Golden Cross is gone: next is Death Cross?

If the 20EMA crosses the 50EMA, the price could extend towards $593. However, that seemed unlikely as BNB’s next target could be $561, where the last golden cross occurred.

For those unfamiliar, a golden cross is a term used to describe the situation when the 20 EMA rises above the 50 EMA. If the 50 EMA is above it, it is called a deer cross.

BNB shows signals that could cause price decline

Source: TradingView

Apart from the above indicators, another indicator that suggested a decline was the Money Flow Index (MFI).

This indicator uses price and volume data to show whether a cryptocurrency is under buying pressure.

At the time of writing, MFI has fallen to 66.04, indicating that BNB purchasing volume has subsided. If the numbers continue to fall, the bearish theory may be justified.

However, this AMBCrypto analysis is not the only one that shares this view. On-chain data reveals that a large portion of the market expects BNB prices to fall.

Bears double their bets

This was evident from the weighted sentiment. negative At press time. This negative value indicates that most of the comments about his BNB on social platforms are bearish.

Unless this situation changes, it may be difficult for prices to soar. On the other hand, the trend could change if statements about BNB start to become more optimistic.

Additionally, when we look at the funding rate, we find it to be on the extreme side of negative territory. Funding rates meant more traders were leaning into short positions.

BNB traders prefer short positions

Source: Santimento

A positive funding would mean traders are bullish on the coin. In addition, financing also affects the price. Given the situation at the time of writing, the price of BNB has fallen despite negative funding.

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A reasonable inference here is that the criminal seller was aggressive and was being compensated for the position.

In such a case, BNB could weaken its bullish move and could be next to fall unless spot buyers save the day.

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