Connect with us

Altcoin

BNB can witness increase in selling pressure, thanks to these factors

Published

on

BNB can witness increase in selling pressure, thanks to these factors
Source: StockAI


  • BNB’s leading indicator RSI was in an overbought position.
  • Most of the metrics gave a bearish reading.

Binance Coin’s [BNB] performance of late has been in the buyers’ favor, like most of the other cryptos. However, Santiment’s data revealed that BNB was overvalued as per its MVRV Z-Score. The metric identifies overvalued and undervalued assets based on short and long-term returns. 

Besides, according to CryptoQuant, BNB’s Relative Strength Index (RSI) was in an overbought position. The RSI, when coupled with BNB’s MVRV Z-Score, suggested that it was likely that we would witness an increase in selling pressure, leading to a price plummet.

At the time of writing, BNB registered over 2% weekly gains and was trading at $290.88 with a market capitalization of more than $45.9 billion.


Read Binance Coin’s [BNB] Price Prediction 2023-24


Here is the scenario

Apart from the aforementioned metrics, a few of the others also did not look quite optimistic for BNB. For instance, BNB’s daily active addresses registered a decline over the last week, which was a negative signal.

Moreover, BNB’s velocity also went down sharply. And, the token’s price volatility went up considerably. This further increased the chances of a price decline. Despite the possibility of a downtrend, BNB managed to remain popular in the market as its social volume was consistently up during the last few days.

Source: Santiment


Realistic or not, here’s BNB’s market cap in BTC’s terms


Can BNB beat the odds?

BNB’s daily chart also gave a bearish notion, as most of the market indicators were supporting the sellers. The Money Flow Index (MFI) registered a downtick and was heading toward the neutral mark, which can cause price declines.

Though the Chaikin Money Flow (CMF) was above the neutral position, it also went down slightly, further increasing the chances of a downtrend in the coming days.

However, the Exponential Moving Average (EMA) Ribbon suggested that the bulls were leading the market as the 20-day EMA was above the 55-day EMA.

Source: TradingView

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.


Please select your Email Preferences.

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.