Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.

BNB may fluctuate within a certain range in the coming hours/days.
Short term holders saw a sharp fall in earnings after Tuesday’s sudden drop.

Bitcoin [BTC] fell from $23k to less than $22.5k on Tuesday, sending the altcoin market into a nosedive in the near term. Binance coin [BNB] fell 9% over the same period, from $323 to $293.

Read Binance Coins [BNB] Price prediction 2023-24

However, bulls found stable support around $297 and started a price recovery. At the time of writing, the value of BNB was $303.6o and could fluctuate in the range below in the coming hours/days.

BNB held steady in the $300 – $310 range

Source: BNB/USDT on TradingView

On the three-hour chart, the Relative Strength Index (RSI) rebounded from the 40 level and showed buying pressure building after falling to the 40 mark.

In addition, the Chaikin Money Flow (CMF) was rejected at the zero mark, forcing it to rise on the upside, indicating that the BNB market was strengthening.

Therefore, BNB could fluctuate between the demand zone ($293 – $300) and $310 in the coming hours. BNB has been trading within this range since Jan. 21, but witnessed a false breakout on Jan. 24. A retest of the USD 319 could also be likely if BTC regains the USD 23k zone.

However, BNB could drop below the demand zone if BTC falls below $22.5k, invalidating the bias described above. But such a drop could settle at the 100-period EMA (exponential moving average) or $286.9 level.

Swing traders should therefore track RSI rejection at the 50 mark, CMF crossover and BTC price action to minimize risk exposure.

Short-term holders’ earnings plummeted and sentiment turned negative

Source: Sentiment

According to Santiment, BNB’s 30-day MVRV (market value to realized value) fell from 36% to 6% at the time of going to press. Short-term holders’ profits fell 30% as BNB’s price correction wiped out recent gains.

How much are 1,10,100 BNBs worth today?

The price decline was also followed by increased negative weighted sentiment and a drop in demand in the derivatives market, as evidenced by the fall in the Funding Rate. However, the funding rate was on the neutral line and any increase could boost BNB’s recovery.

Alternatively, a further decline in the funding rate could lead BNB to retest the demand zone below $300. Moreover, the active address also fell in the past 24 hours, but there was a slight increase at the time of writing. Any further increase in active addresses could boost recovery momentum.

Source: Sentiment



This post BNB stable after a 7% plunge – bulls now face this new hurdle

was published first on https://ambcrypto.com/bnb-steady-after-a-7-plunge-bulls-must-now-handle-this-fresh-hurdle/

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