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Analysis

Binance Coin Price Analysis: 20 March

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Source: Pixabay

Binance Coin noted exponential growth within the first three months of 2021. The digital asset has been returning 590% in year-to-date to investors and was currently seeing the price stabilize above $260.

At the time of writing, BNB was valued at $267.24, whereas its market capitalization hit $41.425 billion making it the third-largest digital asset in the market.

Binance Coin [BNB] chart

Source: BNBUSD on TradingView

The above chart of the Binance coin was indicating the value of BNB has experienced a sudden surge and drop. This surge helped it hit $300, however, the correction pushed the value back under $250. The price has since been built higher and was currently at $267.

The current price was stabilizing and was holding on to the support at $260 and may continue to consolidate at the current level.

Reasoning

The Bollinger Bands that were diverged due to high volatility have now converged. This convergence of the bands has been indicating the reduced movement of the BNB price. As BNB moved sideways the bands indicated that the market was not expecting a price swing anytime soon. However, this sideways movement could be allowing bearishness to seep in.

The 50 moving average and the signal line were crossing over the candlesticks. This suggested that although the price moved sideways, the trend might be flipping.

Meanwhile, the Relative Strength Index [RSI] remained at equilibrium. This level indicated that the current price was being supported by both buyers and sellers. While the MACD indicator also highlighted this reducing bullishness in the market with green bars fading.

Conclusion

The current BNB market has been seeing the price gain stability above $260. The price may remain at this level for a while, however, with bears starting to creep in, the traders may want to be alert for a trend reversal.

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Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.