BNB reached near the overbought zone; is a price reversal likely?

1 year ago 139

Disclaimer: The accusation presented does not represent financial, investment, trading, oregon different types of proposal and is solely the writer’s opinion.

  • BNB reached the overbought zone, with a anticipation of a inclination reversal.
  • The altcoin could autumn to $254.3 oregon $251.6.
  • A breakout supra $263.7 would invalidate the bearish forecast.

Binance Coin (BNB) faced a beardown FUD successful mid-December that sent the terms down from astir $270 to a caller debased of $220. However, the bulls recovered coagulated enactment astatine $231.2 and were capable to equine a palmy recovery.

However, the terms betterment was short-lived, arsenic Bitcoin’s (BTC) sideways operation forced the altcoin market, including BNB, into a trading range. 

BNB had been trading betwixt $240 to $251.6 since 18 December. It lone broke supra this scope connected 4 January 2023, aft BTC recorded an uptrend connected the aforesaid day.

At property time, BTC’s upward momentum had waned, and BNB was trading astatine $257.1. The terms was flashing red, indicating that a correction whitethorn beryllium imminent.

Read BNB’s Price Prediction 2023-24

BNB flashed red: Is a terms pullback likely?

Source: BNB/USDT connected TradingView

The 12-hour illustration flickered reddish astatine property time, and method indicators pointed to a imaginable inclination reversal.

The Relative Strength Index (RSI) was rejected astir the 70 people (overbought zone) and was trending down. This suggests that buying unit peaked and dilatory eased.

The Money Flow Index (MFI) was besides rejected adjacent the 70 people (also successful the overbought zone). This showed that accumulation had peaked and a flimsy organisation had taken place.

If the bears summation momentum, BNB could beryllium forced into a terms correction that could scope the 50-period EMA (exponential moving average) of $254.3. If selling unit intensifies on with a bearish BTC, BNB could autumn adjacent little to $251.6.

These levels tin service arsenic a short-selling people with a halt nonaccomplishment supra $263.7.

However, a determination beyond $263.7 would invalidate the bearish bias described above. Such an upswing volition lone boost the bulls if they wide the hurdle astatine the 50% Fib level of $268.9.

How many BNBs tin you get for $1?

BNB saw a flimsy driblet successful measurement aft the caller terms increase

Source: Santiment

BNB saw a diminution successful trading measurement aft the caller terms rally peaked. This could undermine buying unit and propulsion BNB lower.

Source: Santiment

On the proviso side, the selling unit observed astatine property clip came chiefly from holders with (10K – 100K) coins. However, the supra class accounted for lone 3% of the supply.

The supplier class with implicit 23% ( 1M-10M coins) has been inactive since 21 December.

The adjacent influential and progressive supplier was the (10M-100M) category, which had implicit 57% of the full supply. They had accumulated betwixt 3 and 4 January but were inactive connected 5 January.

The behaviour of the supra dormant whale categories tin propulsion investors retired of their positions, truthful it is worthy tracking their movements.

Ser Suzuki Shillsalot has 8 years of acquisition moving arsenic a Senior Investigative writer astatine The SpamBot Times. He completed a two-hour people successful journalism from a fashionable YouTube video and was 1 of the fewer to springiness it a affirmative rating. Shillsalot's writings chiefly absorption connected shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is simply a flimsy anticipation the illustration pic is AI-generated. You see, this relationship is chiefly utilized by our freelancer writers and they privation to stay anonymous. Wait, are they Satoshi? :/

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