BNB investors remain cautious – $618 or $550, where will the altcoin go?

BNB trades within a narrow range as traders hold their hands.
The price can break out in either direction depending on market sentiment.

Binance coin [BNB] has been trading near the 20-day Exponential Moving Average (EMA) and 50-day Simple Moving Average (SMA) in recent days, indicating a period of market consolidation.

Contents

BNB moves within a tight margin What next for BNB?

An asset’s 20-day EMA is a short-term moving average that responds quickly to price changes. It reflects the average closing price of an asset over the past 20 days.

The 50-day SMA, on the other hand, is a longer-term moving average that reflects an asset’s average closing price over the past 50 days.

When an asset’s price trades close to these averages, it indicates that neither buyers nor sellers dominate the market. It indicates that the asset’s price is not trading convincingly in either direction, but instead moving within a narrow range.

BNB moves within a tight margin

AMBCrypto’s review of other technical indicators, including BNB’s Bollinger Bands, confirmed BNB’s limited price movements.

This indicator tracks market volatility and periods of consolidation. When the gap between the upper and lower bands of this indicator narrows, with the price of an asset in the middle, the market is in the consolidation phase.

BNB’s price movements observed on a 1-day chart showed that the altcoin has been set up this way since April 4.

Likewise, the coin’s Average True Range (ATR) has been steadily declining since early May. This indicator measures the average volatility of an asset over a certain period of time. When it falls in this way, the price of an asset is said to be in consolidation. At the time of writing, BNB’s ATR value was 25.3. Since May 1, it has fallen 14%.

Additionally, BNB’s Relative Strength Index (RSI) has moved sideways since the beginning of the month. A “flat” RSI like this often implies a lack of strong buying or selling pressure in the market.