Binance Coin (BNB) Faces Critical Juncture as Rally Lacking Buying Volume, Retracement Possible

Binance Coin (BNB) finds itself at a critical juncture following a recent breakthrough above a significant resistance level formed by its 20-day exponential moving average (EMA).

Binance Coin (BNB) price faced a critical juncture on Wednesday after clearing a key resistance level. However, underlying indicators suggested that BNB might be due for a retracement.

Despite the apparent bearish outlook, BNB price surged by 8% over the past week. On Wednesday, BNB price cleared the 20-day EMA, which acted as a strong resistance level.

Since August 26, the 20-day EMA formed a resistance at $524.50, which became a crucial price level to watch during the downtrend. Clearing this level sparked optimism among investors.

However, a deeper analysis of technical indicators told a different story. The Chaikin Money Flow (CMF), a key momentum indicator that tracks capital flows, showed a different picture despite the recent price rally.

The CMF indicator pointed to a decreasing capital inflow, which showed that BNB's upward move might not be backed by the buying pressure needed for a sustained uptrend.

BNB price surge not backed by buying volume

Moreover, the CMF indicator dropped below the zero line, which signaled a bearish divergence. This technical setup showed that while BNB price increased, it was not supported by good buying volume, which raised concerns over the sustainability of the current rally.

Adding to the worries, BNB's cryptocurrency market weighted sentiment stood at -0.52, indicating a prevailing negative outlook among market participants. This pessimistic sentiment, along with the weaker buying pressure, could potentially lead to a reversal of BNB's recent gains.

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