Binance Coin [BNB] has offered good returns year-to-date and despite much volatility, it has stayed largely in profit. It was reporting growth of over 800% YTD. However, even BNB could avoid the sell-offs taking place in May as its value crumbled by 40% over the past month.
After hitting a peak at the beginning of May at $704, BNB went into a correction phase. It has not yet managed a complete recovery but was currently trading at a stable value of $353.64.
Binance Coin chart
Source: BNBUSD on TradingView
The above 12-hour chart of BNB was noting a sharp collapse in its value from $700 to $210. However, the coin has made some recovery and was currently consolidating.
Due to this sideways movement, traders seemed indecisive about the future of BNB.
Reasoning
The recovery of price has set BNB on a temporary bullish path, but the overall market trend has remained bearish. As the price climbed higher, parabolic SAR markers aligned under the candlesticks, indicating that the price was trending upwards. Interestingly, 50 moving average has remained way above the candlesticks, signaling downward pressure keeping the price low.
Nevertheless, BNB’s price was at a favorable point in terms of trading as Visible Range indicator showed that at $341, most of the trading has taken place. As BNB remained above this level, it may continue to consolidate but a step under this level could bring in another dump.
Traders were maintaining an even selling and buying pressure at the current price level. Relative Strength Index at 46 was suggesting that buying pressure was rising and pushing BNB towards an even market. However, the dropping value of ADX suggested a possible trend reversal.
Conclusion
Like most altcoin markets, BNB was also seeing confusion among traders. However, this indecisiveness has led to the consolidation of BNB value close to $341. If the value remained above this level, we may see a bullish trend extend in the market. However, if the price breaches support, another drop may be on the cards for the BNB market.
