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Binance Coin Outshines BTC as Technicals Signal Bullish Path

source-logo  coinedition.com 23 April 2024 07:55, UTC

The crypto market is witnessing a performance by Binance Coin (BNB), outpacing Bitcoin (BTC), raising speculation about the strategies of Binance ex-CEO Changpeng Zhao (CZ). However, recent analysis indicates that BNB is not within a distribution range but is in a reaccumulation phase, exhibiting resilience and potential for growth.

BNB outperforming BTC

What is CZ scheming from the shadows? pic.twitter.com/EKXCOz3udV

— DonAlt (@CryptoDonAlt) April 22, 2024

Following its peak, BNB experienced a significant drop but showed reluctance to break down until it reached a critical point in Q2 of 2022. This pattern of bouncing back was mirrored in 2023, displaying behavior inconsistent with distribution characteristics. The analysis underscores that after the pivotal dates in Q2 of both years, BNB was primed for a rebound.

There are a few reasons why $BNB is so strong but in short it's pretty simple.

Its not inside a distribution range but a reaccumulation range instead:

After the top, it had a sharp drop, but it didnt want to break down until it passed a first pivotal date in Q2 '22. Which is… pic.twitter.com/fC5abPdyqQ

— Astronomer (@astronomer_zero) April 22, 2024

Further confirming BNB’s strong position, the crucial price zone between $300 and $360 was successfully overtaken, leading to a smoother path towards all-time highs. Market participants keenly anticipated this pivotal level flip.

While BNB has not yet surpassed its all-time high, the trend suggests that once it breaks through convincingly, reaccumulation will be confirmed, possibly propelling the cryptocurrency to new heights.

BNB’s Price Action

The BNB crypto is experiencing a surge, showing signs that it might reverse previous declines. As of press time, its value has risen by 4.2% in a single day, bringing its price to $604.17. Along with its price, BNB’s market capitalization—the total value of all BNB tokens in circulation—has also grown by 2.20%, reaching $88.482 billion.

BNB/USD 24-Hour Price Chart (Source: CoinStats)

Additionally, there’s a noticeable rise in trading activity, with the volume of BNB traded in the past 24 hours jumping by 5.29%, totaling $1.2033 billion. This increase suggests that investors are becoming more interested and are actively trading BNB, reflecting a positive mood in the market.

On the technical front, the BNB coin is showing a strong uptrend, as per the MACD indicator. Based on the 4-hour chart, the MACD line is climbing high above the signal line, which is at 11.2, hinting at a strong bullish market. This suggests that BNB’s price could rise even more soon. Adding to this positive sign, the green bars on the MACD histogram indicate that buyers are driving the market.

BNB/USD 4-Hour Chart (Source: TradingView)

On the contrary, the stochastic Relative Strength Index (RSI) suggests a nuanced picture. Despite the general market optimism, the RSI points to an overbought condition with a reading of 89.19. Moreover, the ‘K’ line’s position below the ‘D’ line within this zone hints at the possibility of a brief price correction or consolidation phase as the market digests its recent gains.

Nevertheless, overall, the upbeat market mood indicates that any potential corrective movements are likely to be temporary, with the token’s price trajectory expected to maintain an upward course in the coming period.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.