Connect with us

Altcoin

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

Published

on

BNB might be in trouble as this suggests a trend reversal..
Source: StockAI


  • 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

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.