Connect with us
Active Currencies 16226
Market Cap $3,483,130,889,169.80
Bitcoin Share 54.73%
24h Market Cap Change $-1.14
Altcoin

Here’s why BNB investors could have to wait for their fortunes to flash green

2min Read
Posted:
Avatar
editors
BNB might be in trouble as this suggests a trend reversal..
Avatar
editors
Posted:

Share this article

  • BNB’s RSI was in an overbought position
  • MVRV Ratio up, suggesting a possible market top, but other market indicators were bullish. 

Like most other cryptos, Binance Coin [BNB] entered the first week of this year with joy after increasing its value. CoinMarketCap’s data revealed that BNB’s price went up by 11% in the last seven days, and at press time, it was trading at $275.62 with a market capitalization of more than $44 billion. 

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

Nonetheless, investors must be cautious as things might take a U-turn soon, as a few on-chain metrics looked bearish for BNB.

What concerns do investors have?

CryptoQuant’s data revealed that BNB’s Relative Strength Index (RSI) was in an overbought position, which was a massive bearish indicator suggesting a trend reversal in the coming days. In fact, the price decline might have begun already, as at the time of writing, BNB’s price had declined by over 1.3% in the last 24 hours.

Despite the possibility of a trend reversal, BNB remained popular in the crypto space, as it was on LunarCrush’s list of the top five cryptocurrencies by social contributors on 10 January.

Santiment’s chart also pointed out a few concerning metrics, which further increased the chances of a price decline. For instance, BNB’s MVRV ratio was up considerably, indicating a possible market top.

Nonetheless, despite the negative metrics, positive sentiments around BNB seemed to remain unaffected. The daily active addresses on BNB also registered a slight uptick, which was positive.

Source: Santiment

Are your BNB holdings flashing green? Check the Profit Calculator

Why BNB still might have a chance

Unlike on-chain metrics, most market indicators were in favor of the buyers, suggesting a continued price surge. The MACD revealed a bullish advantage in the market. According to the Exponential Moving Average (EMA) Ribbon, the 20-day EMA was fast approaching the 55-day EMA, increasing the chances of a bullish crossover.

After a short decline, BNB’s Chaikin Money Flow (CMF) also registered an uptick. However, the Money Flow Index (MFI) was bearish as it went down and was heading towards the neutral mark. 

Source: TradingView

 

Previous:
Next:

Share

Avatar
Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.