Binance Coin shows a yellow sign  

Binance Coin traded around $575, somewhat above its key support amid the bulls’ inability to break the altcoin’s $600 resistance line. 

The digital asset posted a weighted sentiment pegged at about 0.607 and trending upward, according to Santiment’s data. The positive value of the indicator indicated that participants in the BNB market had favorable sentiments. 

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The primary momentum indicators for BNB also supported this optimistic assessment. Its Money Flow Index (MFI) was 65.61 at the time of publication and was still growing, indicating that market participants preferred to accumulate BNB rather than distribute their holdings. 

Similarly, at 0.07, the altcoin’s Chaikin Money Flow was above the zero line and trending upward. This suggested that the BNB market was seeing a consistent influx of liquidity. The demand for crypto assets would increase if this metric kept rising.  

For the first month, the price of BNB showed a neutral trend, suggesting that the altcoin’s price action in the cryptocurrency market was poor. But when the market became more volatile, the bulls gained ground and the altcoin surged 113.5% in the next month, reaching a monthly high of $635. 

On the other hand, if this bullish forecast proves false and bearish pressure increases, the price of BNB may break below the triangle and trade near the $520 mark. 

The fact that the altcoin’s negative funding rate has been so noticeable over the past few weeks increases the likelihood that this will occur. A negative funding rate on an asset encourages more traders to hold short positions. This shows that a greater number of traders are purchasing the asset in anticipation of a price rally and anticipating a decline in the asset’s value. 

The bulls will regain momentum and the Binance token will test its resistance level of the $630 mark if the market maintains its price above the $565 support level. If that price is maintained, the BNB coin price will be ready to test its previous high of $691 in the coming weeks. Alternatively, should the bulls be unable to maintain the price above the $568 support level, the BNB token will begin to trade in a bearish manner and, thus could likely drop toward its crucial support level of $498 this month. 

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Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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