- The main RSI for BNB was in an overbought mode.
- Most of the metrics gave a bearish reading.
Binance coins [BNB] The recent performance has been in favor of buyers, like most other cryptocurrencies. However, Santiment data showed that the price of BNB is overvalued according to the MVRV Z-score. The metric identifies overvalued and undervalued assets based on short- and long-term returns.
📊 According to the MVRV Z-Score, which identifies overvalued and undervalued assets based on short-term and long-term returns, tops fall into the following categories:
🤔 Exaggerated: BNB dollars
😏 Underestimated: BTC dollarsAnd ETH dollarsAnd $XRPAnd ADA dollarsAnd doggAnd Matic dollarsAnd Chip dollarAnd UNI $And $linkhttps://t.co/52bMDRyqn pic.twitter.com/hBURjNZOLV
Saniment (@santimentfeed) January 20, 2023
In addition, according to CryptoQuant, the NBB’s RSI was in the overbought zone. The RSI, together with BNB’s MVRV Z-Score, suggested that we are likely to see an increase in selling pressure, which could drive the price lower.
At the time of writing, BNB is recording more than 2% weekly gains and has been trade to $290.88 with a market capitalization of more than $45.9 billion.
Read Binance coins [BNB] predict the price 2023-24
This is the scenario
Apart from the aforementioned metrics, some others weren’t quite so optimistic for BNB either. For example, BNBDaily active addresses have been declining over the past week, which was a negative sign.
In addition, BNB’s speed has also dropped sharply. The price volatility of the token has increased dramatically. This increased the chances of a price drop. Although a downward trend may occur, BNB It managed to maintain its popularity in the market as its social volume has been constantly increasing over the past few days.
Realistic or not, here it is BNB’s market cap in BTC’s reformers
Can BNB Beat the Odds?
BNBThe daily chart also gave a bearish outlook as most of the market indicators supported the sellers. The Money Flow Index (MFI) has been declining and has been heading towards the neutral mark, which could cause prices to drop.
Although the Chaikin Money Flow (CMF) was above the neutral position, it also decreased slightly, which increased the chances of a downside trend in the coming days.
However, the exponential moving average (EMA) range indicated that the bulls were driving the market as the 20-day EMA was above the 55-day EMA.