- The price of BNB is currently trading within a descending triangle.
- Demand for the altcoin needs to increase to surpass the upper line of this triangle.
Binance Coin [BNB] It has been in a downward trend and has formed a descending triangle since the price peaked at $612 on May 27. At the time of writing, the altcoin is trading at $593.11, recording a 3% price drop over the past three days.
BNB at a crossroads
At the current price, Binance Coin is trading just below the lower line of the descending triangle which forms support.
A surge in buying pressure would be required for a move to the upper line of this triangle (the resistance level) to materialize.
In the current market, readings from BNB’s key momentum indicators suggest that neither buyers nor sellers are exerting enough pressure to steer the trend in their direction.
BNB’s Relative Strength Index (RSI) was at 49.50 and the Money Flow Index (MFI) was at 56.60. A combined reading of the values of these indicators shows that the price movement is balanced between gains and losses, with neither the bears nor the bulls clearly in the lead.
This consolidation is confirmed by BNB’s average true range (ATR), whose value has fallen 23% since May 23.
This indicator measures market volatility by calculating the average range between high and low prices over a specified period of time.
BNB/USDT. Source: TradingView
Such a decline would reduce asset price volatility, suggesting that the market is entering a consolidation phase.
Opportunity for BNB bulls
While supply and demand appear to be in balance in the BNB market, AMBCrypto’s evaluation uncovered several indicators that support a bullish trend for the altcoin.
For example, BNB’s Chaikin Money Flow (CMF) was above the zero line at the time of writing. This metric measures the inflow and outflow of funds into the BNB market. BNB’s CMF of 0.05 indicates that there is still demand for the altcoin.
BNB’s Parabolic SAR reading confirmed this trend: at the time of writing, the dots that make up this indicator are below the price of BNB, suggesting a possible short-term price upswing.
Read Binance [BNB] Price forecast 2023-2024
Finally, at its current price, BNB is trading just above its 20-day exponential moving average, meaning that the current price is higher than the average price over the past 20 days, albeit by a small margin.
BNB/USDT. Source: TradingView
This bullish signal suggests that traders may be slowly accumulating altcoins.
