After the sharp drop in price on January 2, Binance Coin (BNB) climbed back to $322. But in the last 24 hours, the coin has lost 4.34% of its value, according to CoinMarketCap.
According to the price tracking platform, BNB could be on the verge of losing its hold on the $300 region. Coin Edition looked at the 4-hour BNB/USD chart shown below and observed that the RSI had formed a negative divergence.
No Solid Signal for an Uptrend
The negative divergence the RSI formed indicated a weak momentum for the BNB price action. If buyers do not strengthen their position, the coin movement will favor the bears.
Should this happen, BNB might drop below $300. However, there is a chance for the price to rebound. This was because the RSI was close to being overbought. If buying pressure intensifies and bulls defend the $300 support, BNB might flip the $320 overhead resistance.
However, indications from the Accumulation/Distribution (A/D) showed that a jump might be unlikely in the short term.
At press time, the A/D indicator had stalled, suggesting that a potential uptrend had been invalidated. If this remains the case, BNB might keep trading between $300 and $305.
BNB/USD 4-Hour Chart (Source: TradingView)
Meanwhile, there have been some comments about the BNB price action by some analysts. One of those opinions was from Altcoin Sherpa.
BNB to Get More Gains In the Future?
According to Altcoin Sherpa, BNB has the potential to make solid gains by the end of 2024. Although he admitted the current structure looked shaky, he confidently noted that the Binance Launchpad would play a major role in the coin’s performance.
$BNB: Bid around the $285 mark IMO. Current area is iffy and entire market is shaky rn. Still bullish this one though, I think that we’re going to see strong gains for BNB in 2024; mostly thru binance launchpad projects and more. #BNB pic.twitter.com/NCNzBwLTQJ
— Altcoin Sherpa (@AltcoinSherpa) January 5, 2024
Binance Launchpad enables users to stake their crypto assets and earn new ones, all while safekeeping them. In the process, receive rewards in return without having to buy the newly launched DeFi tokens.
Recently, the Binance Launchpad has been involved in introducing some cryptocurrencies. Some of them include Injective (INJ) and Fusionist (ACE). In 2024, the exchange noted that there is more to come in that regard.
Since the Launchpad usually involved staking BNB, demand for the coin might increase at some point. In turn, this could pave the way for a bullish performance.
But in the short term, BNB might not experience a significant increase. This was because of the indications shown by the Exponential Moving Average (EMA).
BNB/USD 4-Hour Chart (Source: TradingView)
From the chart above, the 9-day EMA (blue) and 20-day EMA (yellow) were in a close range. This suggests possible consolidation for BNB. For now, BNB might keep trading above $300. But a flip over the $320 resistance might be delayed.
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