Last week, Binance Coin (BNB) saw an almost 10% increase in value and traded at $586 level. However, the Chaikin Money Flow (CMF) indicator entering a downward trend suggests a possible bearish trend in the market. CMF is an indicator that measures the money flow of a cryptocurrency over a specific period of time, and a downward trend indicates that selling pressure could increase.
Technical Indicators for BNB
There is an inconsistency between the downward trend in BNB’s CMF indicator and the price increases. This inconsistency implies that market buyers may not be able to support the rising prices, and a downward correction could be on the way. The MACD indicator also gives a similar downward signal; when the MACD line crosses below the signal line, it can be interpreted as a bearish sign.
Price Performance and Volatility of BNB
Despite a 10% increase in price, it is not supported by strong demand. The Money Flow Index (MFI) indicates selling pressure outweighing buying activity. However, BNB’s Bollinger Bands (BB) indicator suggests that the price volatility is low and significant fluctuations are unlikely. The Bollinger Band Width (BBW) also shows a downward trend, confirming the low volatility.
As a result, it is expected that BNB will lose some of its short-term gains. Technical indicators, especially CMF and MACD, indicate a bearish trend and the potential for increased selling pressure. On the other hand, the low price volatility of BNB means that sudden price changes are less likely.
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