- A bullish invalidation could see BNB fall to $561.
- The funding rate and sentiment were negative, suggesting a bearish bias.
binance [BNB] could try to breakout based on the 4-hour chart. But AMBCrypto analysis revealed that this effort could be in vain.
One of the reasons for this prediction is the exponential moving average (EMA). This indicator measures the direction of the trend over some time.
At the time of this publication, BNB changed hands at $586. But the 20 EMA (blue) and the 50 EMA (yellow) were in the same place. The EMA positions indicated hesitation on the part of bulls and bears to direct the price action.
Therefore, BNB could trade within a tight range unless a crossover occurs.
The golden cross disappeared: the next death cross?
If the 20 EMA crosses the 50 EMA, the price could extend towards $593. But that seemed unlikely, as BNB’s next target could be $561, where the last golden cross occurred.
For those unfamiliar, the golden cross is the terminology used to describe a situation where the 20 EMA crosses above the 50 EMA. If the 50 EMA rises above it, then it is called a scarcity cross.
Apart from the previous indicator, another one that suggested a rejection was the Money Flow Index (MFI).
This indicator uses price and volume data to show whether a cryptocurrency is experiencing buying pressure or not.
At press time, the MFI had decreased to 66.04, indicating that BNB purchasing volume had decreased. If the reading continues to fall, the bearish thesis could be validated.
However, this AMBCrypto analysis was not the only one that shared this opinion. A look at the on-chain data revealed that a large portion of the market expects the BNB price to decline.
Bears double down
This was evident from the weighted sentiment, which was negative at press time. This negative value shows that the majority of comments about BNB on social platforms were bearish.
As long as this remains the same, it could be difficult for the price to rise. On the other hand, if the comments on BNB start to turn optimistic, the trend could change.
Furthermore, a look at the funding rate showed that it was at the extreme end of the negative area. The funding rate meant more traders leaned toward short positions.
If the funding was positive, it would have implied traders are bullish on the currency. In addition, financing also influences the price. As of press time, BNB price is down while funding is negative.
Is your wallet green? Check the BNB Profit Calculator
The reasonable inference here is that criminal sellers are aggressive and reap rewards for their positions.
In a case like this, BNB could fade a bullish move and a possible drop could be next, unless spot buyers save the day.
Next: Dogecoin [DOGE] decouplings: Does Elon Musk have a role to play?
This is an automatic translation of our English version.
