BNB Struggles to Surpass $600: Factors That Could Push the Crypto Asset to $550

• Sentiment towards BNB turns bearish despite the altcoin’s attempts to breakout.
• A bullish invalidation could cause BNB to drop to $561.
• Funding Rate and sentiment were negative, suggesting a bearish bias.

Binance Coin (BNB) faces a potential bearish turn, despite attempts to breakout. Factors such as negative Funding Rate and sentiment indicate a possible drop to $561.

BNB Struggles to Breakout

Binance Coin (BNB) might attempt to break out according to the 4-hour chart. However, analysis from AMBCrypto suggests that this effort could be in vain. One of the reasons for this prediction is the Exponential Moving Average (EMA), an indicator that measures trend direction over time. At press time, BNB changed hands at $586. But the 20 EMA (blue) and 50 EMA (yellow) were at the same spot. The EMA positions indicated hesitation by bulls and bears to direct the price action.

Golden Cross and Death Cross

If the 20 EMA crosses over the 50 EMA, the price might extend toward $593. But that seemed unlikely as the next target for BNB could be $561 where the last golden cross happened. For those unfamiliar, the golden cross is the terminology used to describe a situation when the 20 EMA crosses above the 50 EMA. If the 50 EMA rises above it, then it is termed a dearth cross. Apart from the indicator above, another one that suggested a decline was the Money Flow Index (MFI). This indicator uses the price and volume data to show if a cryptocurrency is experiencing buying pressure or otherwise. At press time, the MFI had decreased to 66.04, indicating that the BNB’s buying volume had subsided. Should the reading continue to decline, the bearish thesis might be validated.

Bearish Sentiment Persists

This bearish view is not only shared by AMBCrypto analysis. On-chain data reveals that a l... Read the full article for FREE at COINOTAG!