Binance Coin (BNB) faces a potential decline as the price approaches key moving averages
Binance Coin (BNB) is currently trading at its 50-day simple moving average (SMA). At press time, the coin's price is in a downtrend, and appears to be on its way towards its 20-day Exponential Moving Average (EMA).
A decline below these key levels may indicate an increase in selling activity and a decrease in demand for the altcoin.
Binance Coin is trying to fall below key levels
The 50-day simple average (SMA) of an asset is a technical indicator that calculates the average closing price over the past 50 days. On the other hand, the 20-day Exponential Average (EMA) measures the average price of an asset over the last 20 trading days.
At press time, BNB is trading around its 50-day simple average and is in a downtrend, trying to fall below its 20-day EMA. When an asset's price is set up this way, it indicates that its recent momentum is weaker compared to its long-term trend.
This indicates a possible trend change from bullish to bearish, and traders often interpret it as a signal to sell.
Although BNB is poised to give up some of its recent gains, bulls still control the market. Readings from the Moving Average Convergence/Divergence (MACD) indicator show that buying pressure continues to outpace selling momentum among market participants. At the time of publication, the currency's MACD line (blue) is above the signal line (orange) and the zero line and is in an uptrend.
This indicator measures the direction of an asset's price and identifies potential entry and exit points. When the MACD line is above the signal line and zero line, it is bullish. This means that the asset's short-term momentum is stronger than the medium-term trend, indicating a potential price rise.
Confirming the strength of the bullish bias towards BNB, Chaikin Money Flow (CMF) is in an uptrend at 0,26.
BNB Price Forecast: The market could be heading in either direction
Readings from BNB's MACD and CMF indicators indicate bullish momentum, suggesting that the asset's price is likely to increase. However, the fact that its price is at the 50-day simple average and approaching the 20-day EMA indicates that there may be downward pressure.
If the bearish signals from the BNB moving averages overcome the bullish signals from the MACD and CMF, the price will likely fall. The value of the coin may drop to $556.
However, if the bearish forecast is refuted, the coin price could rise above $600 to trade at $619.