[Binance Coin Breaks Key Resistance Level, But Buyers Hold Back]
This analysis examines BNB’s recent price rise and predicts a possible reversal of some of the past week’s gains. BNB is up 8% over the past seven days and on Wednesday broke above the 20-day moving average (EMA) at $524.50, which has been resistance since August 26.
Although the price broke this resistance, the Chaikin Money Flow (CMF) indicator showed weakening buying pressure and bearish divergence. CMF has fallen below the zero line, indicating insufficient capital inflows and the rebound may be unsustainable. The weighted sentiment index is also at -0.52, showing that market sentiment is biased towards the negative, with fear and uncertainty suppressing further gains for BNB.
If buying pressure continues to weaken, BNB could retest the 20-day EMA and drop towards $400. If new demand emerges, the price could rebound to $589.90.
