BNB’s Weekend Surge: Don’t Get Complacent Yet – The Real Test for Binance Coin Has Only Just Begun
- Over the weekend, Binance Coin (BNB) broke through the downtrend line that has been in place since August 23.
- The success of the retest of the breakout level is uncertain.
- After peaking at $600 on August 23, BNB is seeing an increase in selling pressure.
BNB Price Analysis: Will the Uptrend Continue?
Over the weekend, Binance Coin (BNB) broke through the downtrend line that has been in place since August 23. The altcoin is still in an uptrend, but the rally could be short-lived.
The success of the retest of the breakout level is uncertain. The buying momentum in the market seems weak to sustain the uptrend. Traders are watching to see if BNB can hold this important level or if the breakout fails.
BNB Rebounds, But Still at Risk of Downside
After peaking at $600 on August 23, BNB is seeing an increase in selling pressure. The price has fallen below the downtrend line. This bearish pattern occurs when selling pressure prevents the asset from breaking through the resistance level.
Last weekend, selling pressure eased and BNB bulls pushed the price above the trend line. However, the uptrend may soon be corrected. The current buying activity does not seem to be enough to sustain the rally.
This is reflected in BNB’s falling Chaikin Money Flow (CMF). CMF tracks the movement of capital in an asset. CMF is falling below the zero line, indicating a bearish divergence with the rising price of the coin.
This divergence suggests that the buying pressure supporting the rally is weakening, which signals that the uptrend is losing momentum and a price correction or reversal is imminent.
Also, the Binance Coin Bull Bear Power (BBP) indicator, currently at -17.1, indicates that the bearish outlook is still dominant in the market. This indicator quantifies the buyer and seller power, and a negative state means that the market is dominated by sellers.
BNB Price Prediction: Futures Traders Watch the Rally
Despite the possibility that BNB may lose its recent gains, futures traders are not concerned. They still prefer to long the coin as it shows a positive funding rate on exchanges.
Today, BNB’s funding rate is 0.0005%. A positive funding rate suggests that more traders expect prices to rise.
These long positions could be profitable if the market sentiment shifts from negative to positive and buying pressure increases. This could push the price of BNB to $522.90 and pave the way for a rally towards $600.
However, if the bearish divergence in CMF leads to a failed retest of the breakout line, BNB’s value could drop to $468.90.