- Binance Coin (BNB) is currently trading within a narrow range, with potential to break out in either direction based on market sentiment.
- Technical indicators suggest a period of market consolidation, with BNB trading near its 20-day Exponential Moving Average (EMA) and 50-day Simple Moving Average (SMA).
- If bullish activity soars, BNB’s next price point might be above $600. Otherwise, its value will fall to the $550 region.
As BNB trades within a narrow range, investors remain cautious. Will the altcoin break out to $618 or fall to $550?
BNB’s Market Consolidation
Binance Coin [BNB] has been trading near its 20-day Exponential Moving Average (EMA) and 50-day Simple Moving Average (SMA) in the past few days, indicating a period of market consolidation. The 20-day EMA is a short-term moving average that reacts quickly to price changes, reflecting the average closing price of an asset over the past 20 days. The 50-day SMA, on the other hand, is a longer-term moving average that reflects an asset’s average closing price over the past 50 days. When an asset’s price trades close to these averages, it suggests that neither the buyers nor sellers are dominating the market, indicating that the asset’s price is moving within a narrow range.
Technical Indicators Confirm Narrow Price Movements
Other technical indicators, including BNB’s Bollinger Bands, confirm BNB’s narrow price movements. This indicator tracks market volatility and periods of consolidation. When the gap between this indicator’s upper and lower bands contracts, with an asset’s price in the middle, the market is in the consolidation phase. BNB’s price movements observed on a 1-day chart showed that the altcoin has been set up this way since 4 April. The coin’s Average True Range (ATR) has also declined steadily since the beginning of May, indicating price consolidation. At press time, the value of BNB’s ATR was 25.3, having declined by 14% since 1 May. Furthermore, BNB’s Relative Strength Index (RSI) has moved sideways since the beginning of the month, implying a lack of strong buying or selling pressure in the market.
BNB’s Potential Price Movements
If bullish momentum climbs and BNB breaks out of the narrow range in an uptrend, the coin may rally to exchange hands at $618. However, if positive sentiment nosedives and bearish activity become significant, the altcoin may break support to trade below $556.
Conclusion
As BNB trades within a narrow range, investors remain cautious. The altcoin’s price could break out in either direction, depending on market sentiment. If bullish activity soars, BNB’s next price point might be above $600. Otherwise, its value will fall to the $550 region. Investors should keep a close eye on market trends and technical indicators to anticipate potential price movements.
