BNB Bulls Begin Accumulation
BNB bulls are gradually accumulating the coin in an attempt to push its price past resistance. Currently, BNB’s price trends within a descending triangle. To break above the upper line of this triangle, the demand for the altcoin must increase significantly.
BNB’s Descending Triangle Formation
Since peaking at $612 on 27th May, Binance Coin (BNB) has been trending downward, forming a descending triangle. As of this writing, BNB traded at $593.11, marking a 3% price dip over the past three days.
BNB at a Crossroads
At its current price, Binance Coin is trading slightly below the lower line of the descending triangle, which serves as support. For a rally towards the resistance level (the upper line of the triangle) to occur, a surge in buying pressure is necessary.
In the current market, readings from BNB’s key momentum indicators show that neither buyers nor sellers are exerting enough pressure to drive the trend in their direction.
- BNB’s Relative Strength Index (RSI): 49.50
- Money Flow Index (MFI): 56.60
The combined reading of these indicators shows that price movement is balanced between gains and losses, with neither bears nor bulls having clear dominance.
Market Consolidation
This consolidation is confirmed by BNB’s Average True Range (ATR), which has dropped by 23% since 23rd May. The ATR measures market volatility by calculating the average range between high and low prices over a specified number of periods. When it declines, it suggests that an asset’s price is becoming less volatile and the market is entering a consolidation phase.
BNB Bulls Stand a Chance
Although there is a seeming balance between supply and demand in the BNB market, some indicators affirm a bullish bias for the altcoin.
- Chaikin Money Flow (CMF): At press time, BNB’s CMF rested above its zero line at 0.05, indicating ongoing demand for the altcoin.
- Parabolic SAR: The dots that make up this indicator are currently under BNB’s price, suggesting a potential short-term price surge.
- 20-day Exponential Moving Average (EMA): BNB is trading slightly above its 20-day EMA, indicating its current price is higher than its average price over the past 20 days, signaling slow accumulation by traders.
BSCN is aiming to become the leading media coverage platform around the Binance Smart Chain Ecosystem. With a strong focus towards Content Quality, Decentralized platforms, Hot topics in the market, Informative and education sources and guidance in how to be more aware around unreliable crypto projects.
