BNB fails to hold 100 EMA; Reaches close to another breakdown!
Developing a decentralized Binance Chain is not a one-day work but the combined work of multiple validators and BNB holders. With sufficient BNB holding, anyone can put themselves as a Binance Smart Chain validator, but the combined volumes of validators allow the development of a decentralized decision-making environment where the power rests amongst everyone.
With problem-solving capabilities with Smart Chain, Beacon Chain, and its NFT projects, BNB has projected itself in the 5th position with a market capitalization of $43.84 billion. The sentiment for BNB remains positive from its emergence date, and holders are already in profit.
The only hindrance to its growth is the government regulations on cryptocurrencies. In just 2022, BNB has lost its significant value; October might turn out to be another negative month considering the price volatility.
BNB’s price action has seemingly failed to move out of its consolidation zone, restricting the possibility of volatile movement. The narrow zone has made it easier for traders to make quick entries and exits. However, there is no guarantee of the possibility of these levels surviving the buying and selling pressure.
BNB remains amongst the list of a few elite coins that enjoy a consistent transaction volume. The frequency of positive candles reflects the uptrend possibility of BNB. Despite the possible price movements, technical indicators are still moving in a narrow zone, with the buying sentiment indicator RSI headed towards oversold zones.
MACD, on the other hand, is not showcasing any clear price momentum. The resistances for BNB have emerged at $301.2 and $337 on the short-term scale, with active support from $200 to $250 levels. For a more detailed analysis, check out our BNB crypto price prediction.
On weekly charts, the price action of BNB can be seen consolidating with the resistance near $300, but the bearish engulfing candle formation might question the uptrend possibility of BNB. The benchmark created by the 100 EMA curve should be considered before making any positional trades for BNB.
Amidst the price action movement between support and resistance, one needs to be aware of the consequence of a price breaching either of the support levels. On the upside, more resistance would develop once buyers begin to book profits ahead of the $350 mark.
