Flow

bullish

Coin

<ul class="wp-block-list">
 <li>BNB breaks above 20-day EMA resistance at $524.50 but faces weakening buying pressure.</li>
 <li>Chaikin Money Flow (CMF) indicates bearish divergence, suggesting potential price reversal.</li>
 <li>Price could retest $524.50 support or potentially drop to $400 if bearish trend continues.</li>
</ul>
<a href="https://thenewscrypto.com/?s=Binance" target="_blank" rel="noopener noreferrer nofollow">Binance </a>Coin (<a href="https://thenewscrypto.com/?s=BNB" target="_blank" rel="noopener noreferrer nofollow">BNB</a>) finds itself at a critical juncture following a recent breakthrough above a significant resistance level formed by its 20-day exponential moving average (EMA).
Despite this apparent bullish move, underlying indicators suggest that the cryptocurrency may struggle to maintain its upward momentum, potentially leading to a retracement of recent gains.
Over the past week, BNB has experienced an 8% price surge, culminating in a breach of the 20-day EMA on Wednesday. This moving average, which had established a formidable resistance at $524.50 since August 26, typically serves as a key barrier during downtrends. BNB’s ability to overcome this level initially sparked optimism among investors.
However, a closer examination of technical indicators paints a more complex picture. The Chaikin Money Flow (CMF), a crucial momentum indicator tracking capital flows, has been on a downward trajectory despite the recent price rally.
This divergence between price action and capital inflow suggests that BNB’s upward move may lack the substantial buying pressure necessary for sustained growth.
<h2 class="wp-block-heading" id="h-bnb-price-surge-not-backed-by-buying-volume">BNB price surge not backed by buying volume</h2>
Further compounding concerns, the CMF has dipped below the zero line, signaling a bearish divergence. This technical setup indicates that while BNB’s price has increased, it is not supported by decent buying volume, raising questions about the sustainability of the current rally.
<figure class="wp-block-image size-large"><img decoding="async" width="1024" height="347" src="https://thenewscrypto.com/wp-content/uploads/2024/09/image-39-1024x347.png" alt="" class="wp-image-107914" srcset="https://thenewscrypto.com/wp-content/uploads/2024/09/image-39-1024x347.png 1024w, https://thenewscrypto.com/wp-content/uploads/2024/09/image-39-300x102.png 300w, https://thenewscrypto.com/wp-content/uploads/2024/09/image-39-768x260.png 768w, https://thenewscrypto.com/wp-content/uploads/2024/09/image-39.png 1536w" sizes="(max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">
 Source:&nbsp;<a href="https://app.santiment.net/charts/PIfetp9N__sCl" target="_blank" rel="noopener noreferrer nofollow">Santiment</a>
 </figcaption>
</figure>
Market sentiment adds another layer of complexity to BNB’s outlook. The cryptocurrency’s weighted sentiment, a metric gauging overall market mood, stands at -0.52, reflecting a prevailing negative outlook among market participants.
This pessimistic sentiment, combined with weakening buying pressure, could potentially catalyze a reversal of BNB’s recent gains.

Binance Coin (BNB) Breaks Above 20-Day EMA Resistance: but Faces Weakening Buying Pressure

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