Like many altcoins, Binance Coin (BNB) did not escape Monday's market bloodbath as the price nearly slid below $400. Two days later, the altcoin's value has increased and is close to retesting the psychological $500 region.
Binance Coin (BNB) began the week in the red after Monday’s market bloodbath saw the coin’s price nearly slip below the $400 level. But checking the altcoin’s price movement now shows a different picture.
After Monday’s market crash, BNB’s price dropped sharply from a high of $498.92 to a low of $404.30. But as the dust settled, BNB began to recover some lost ground.
On Wednesday, BNB’s price rose to a high of $490.82, bringing the coin’s total gain for the week to around 21%. At the time of writing, BNB’s price is trading up 0.38% at $488.23.
BNB’s recent price recovery saw the coin close in on retesting a key psychological resistance level around the $500 mark. But as BNB attempts to reach this milestone, the coin finds itself at a critical juncture that could either confirm or nullify the prediction.
According to the liquidation heatmap, a high concentration of liquidity is located at $520.65, and another one is at $463.23. In simple terms, the heatmap spots price levels where large-scale liquidations may occur.
As more liquidity enters a price range, the colors change from purple to yellow. Typically, when there is high liquidity at a level, the price tends to move in that direction either as support or resistance.
On the upside, BNB’s price may increase to $520 if buying pressure increases. However, rejection, as the price moves upwards, could see the coin draw down to $463.23.
But a closer look at the Chaikin Money Flow (CMF) shows that the price trend favors an upswing. CMF shows whether a cryptocurrency is experiencing net accumulation or distribution.
Using a volume-weighted approach, accumulation is higher than distribution if the reading is above the zero line. A negative rating indicates that market participants are distributing more than they are accumulating.
As seen below, the CMF on BNB’s daily chart is 0.04, indicating that investors have accumulated a higher volume than those that have distributed it.
Should this continue, BNB’s price may be able to retest $500 and probably near $520 in the coming days.
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