BNB price may be preparing for a period of consolidation, as indicated by the steady number of transactions over the past week. Currently, BNB's RSI is at a high of 84, signaling overbought conditions that could dampen the prospects of any immediate price rally.
Supporting this, the EMAs provide a solid foundation for a sustained period of consolidation, suggesting more stable markets ahead for Binance's altcoin.
The number of BNB transactions remains stable
The number of BNB transactions has remained fairly stable since the end of February 2024. Its price skyrocketed from $313 on January 1 to $632 on March 15. That represents a 101% increase in just over 2 months. Then, the BNB price adjusted to $507 on March 19. Continuing, it had a new price increase, reaching $578 on March 27.
Number of daily BNB transactions
Compared to the top 21 cryptocurrencies by market capitalization, ignoring memecoins and stablecoins, BNB's annual growth rate is only behind NEAR, BCH and TON.
Stable daily transaction numbers and uniform 7-day moving averages demonstrate solid investor confidence in BNB. Even after this year's notable gains, the promise of consistently high returns could keep investors focused on BNB.
High BNB RSI could prevent new highs
With BNB's Relative Strength Index (RSI) peaking at 84, it has entered overbought territory. That implies the market may be overvaluing the asset at this time. Such a high RSI often serves as a warning signal that the asset may not be able to sustain further growth in the short term. This happens due to the increased possibility of price adjustments.
RSI BNB 7 days
The RSI tracks the rate of price change, assessing whether an asset is overbought or oversold between 0 and 100. BNB's high RSI suggests widespread buying, increasing the likelihood of consolidation. imminent with stable trading volume.
At this RSI level, traders can infer that BNB's buying momentum has peaked, limiting impending price increases in the short term.
BNB Price Prediction: Consolidation Ahead or Fresh Push Above $645 ?
The BNB price chart shows that the short-term Exponential Moving Average (EMA) just crossed the long-term EMA. This is often considered a bullish signal, signaling that recent momentum is strong and could lead to further increases.
BNB 4-hour price chart and EMA
EMAs are a type of moving average that give greater weight to recent price levels, making them more responsive to new price movements than simple moving averages. The short-term EMA crossing the long-term EMA shows that buyers are regaining control and could push the price higher.
If BNB maintains its current pace and stays away from consolidation, the price could challenge and surpass the $645 resistance. These results depend on consistent market conditions and avoiding price-stable consolidation. If it starts to decline, BNB could revisit the $497 support level.
