Assessing BNB Price Trends: Potential Correction Below $500 Ahead?

In Brief

BNB Daily Transactions recently hit its lowest level since February 25. Between March 31 to April 1, SAR metric changed its pattern from bullish to bearish. EMA Lines are forming a consolidation pattern, but the short-term lines are dangerously approaching the long-term lines, which could form a death cross.

BNB Daily Transactions Are Decreasing

Since January 2024, BNB has seen steady transaction volumes with some peaks. Its price, however, soared from $313 on January 1 to $632 by March 15. This jump, over just two months, represents a 101% increase. The rapid ascent indicates that BNB’s price is likely driven more by the overall bullish crypto market trend than by its fundamentals.

• Compared to the top 21 cryptocurrencies by market cap—excluding memecoins and stablecoins—BNB’s year-to-date (YTD) growth is notable, only surpassed by Bitcoin Cash, TON, and Stacks.
• Yet, a recent fall in daily transactions and a drop in the 7-day moving average may signal waning investor interest in BNB.
• Its daily transactions reached a peak of 6.2M on February 22. However, in the last few days, that metric has been declining consistently. It decreased from 4.4M on March 28 to 3.6M on March 31. This is its lowest level since February 25.
• This cooling sentiment could stem from its substantial gains earlier in the year, prompting investors to search for other ventures with potentially higher returns on investment (ROI).

BNB SAR Metric Recently Changed Its Status

Between March 28 and March 31, BNB experienced a bullish phase, evidenced by its SAR (Stop and Reverse) metric, during which its price climbed from $564 to $620.

• The SAR metric is a technical analysis indicator used to identify potential reversals in the price direction of an asset.
• However, a significant shift occurred between March 31 and April 1, when the SAR metric transitioned from a bullish to a bearish state.
• This change in the SAR metric is crucial for investors, as it provides insight into the potential downward movement of BNB’s price, signaling caution in the short term.

BNB Price Prediction: Back To $500?

The EMA lines for BNB are signaling a potential downtrend on the horizon as the short-term lines verge on crossing below the long-term lines, a phenomenon known as a death cross.

• A death cross occurs when a shorter-term moving average falls beneath a longer-term moving average, showing weakening market momentum and potentially heralding a bearish phase for BNB’s price.
• Given the imminent bearish signal from the death cross, BNB’s price might soon test the critical support level of $535.
• Should this level fail to hold, the next potential floor is at $498, indicating a further retreat.
• Conversely, should BNB manage to reverse its fortunes and enter an uptrend, investors will likely see it challenge the resistance levels at $620 and, subsequently, $645, marking key thresholds for potential price recoveries.