- A bullish nullification could push BNB down to $561.
- Funding rates and sentiment were negative, suggesting a bearish bias.
Binance (BNB) may attempt a breakout according to the 4-hour chart. But AMBCrypto’s analysis shows that these efforts may be in vain.
One of the reasons for this prediction is the exponential moving average (EMA). This indicator measures the direction of a trend over a period of time.
At press time, BNB was changing hands at $586. However, the 20 EMA (blue) and 50 EMA (yellow) were in the same place. The EMA stance indicated reluctance on the part of bulls and bears to dictate price action.
Therefore, BNB can trade within a narrow range as long as no crossover occurs.
Golden Cross is gone: Dead Cross next?
If the 20 EMA crosses the 50 EMA, the price may extend to $593. However, that seemed unlikely as BNB’s next target could be $561, where the last golden cross occurred.
For those of you who are unfamiliar, a golden cross is a term used to describe a situation where the 20 EMA crosses the 50 EMA. If the 50 EMA rises above it, it is called a deficiency crossover.
Source: TradingView
Apart from the above indicators, another indicator that suggested a decline was the Money Flow Index (MFI).
This indicator uses price and volume data to show whether a cryptocurrency is under buying pressure.
At press time, MFI had decreased to 66.04, indicating a decrease in BNB purchasing volume. If the readings continue to fall, the bearish thesis could be validated.
However, this AMBCrypto analysis is not the only one that shares this view. Looking at on-chain data, it appears that a significant portion of the market is expecting the BNB price to fall.
The bear doubled down on the bet.
This was evident in Weighted Sentiment, which was negative at the time of reporting. This negative value shows that most comments about BNB on social platforms are bearish.
As long as this stays the same, it may be difficult for prices to surge. On the other hand, the trend may change if comments about BNB start to turn more bullish.
Moreover, looking at the funding rate, it was found to be at the extreme end of negative territory. The funding ratio means that more traders are leaning towards selling positions.
Source: Santiment
A positive funding would have suggested that traders are bullish on the coin. Financing also affects the price. As of press time, the price of BNB has fallen while funding is negative.
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The reasonable inference here is that the culprit seller is being aggressive and is being rewarded for his position.
In cases like this, BNB may be bullish and then bearish next unless spot buyers come to the rescue.