BNB’s downward spiral sets in as traders close positions
The past three days have been marked by a decline in BNB’s price and its open interest. Price movements assessed on a daily chart, however, suggested that coin accumulation continues to thrive.
- BNB’s price and open interest have declined in the past few days.
- However, coin accumulation continues to exceed distribution.
After peaking at $234 on 24 October, the price per Binance Coin [BNB] has been on a downward trajectory, according to data from Santiment. This decline has been accompanied by a significant drop in the coin’s open interest, suggesting that traders are closing their trading positions.
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At press time, the altcoin exchanged hands at $225.61, falling by almost 5% in the past three days. Its futures open interest was pegged at $304 million as of this writing, having declined by 8% since 24 October, according to data from Coinglass.
On the daily chart, BNB’s On-balance volume (OBV) revealed that the coin’s trading volume has also cratered during the period under review. Typically, a declining OBV alongside falling prices suggests weakening buying interest or increasing selling pressure.
The buyers remain in control
While the price decline experienced in the past few days suggests that buying momentum has slowed, the coin’s Directional Movement Index indicator showed that the bulls continue to have the upper hand.
This indicator measures the strength and direction of a trend in a market. At press time, the positive directional indicator (green) at 29.98 rested solidly above the negative directional indicator (red) at 9.30.
When these indicators are positioned in this manner, it confirms a bullish trend and suggests that buyers in the market have more strength than sellers.
Likewise, the coin’s Average Directional Index (ADX) was 30.70. ADX helps to determine whether the market is trending strongly or is in a range-bound phase
An ADX value above 25 is interpreted as an indication of a strengthening trend. The 25 level is often used as a threshold to distinguish between trending and non-trending (sideways or range-bound) market conditions.
Realistic or not, here’s BNB’s market cap in BTC terms
In addition, BNB’s key momentum indicators were spotted above their neutral lines. For example, the coin’s Relative Strength Index (RSI) was 63.42, while its Money Flow Index (MFI) was 65.25.
These values indicated that while BNB’s buying momentum might have experienced a pullback in the past few days, it still exceeded its selling pressure.
