Binance Coin (BNB) has been trading in a tight range, which is an indication of the asset’s negative run. The data shows that the trading price of BNB is hovering between $318 and $304.
The $318 trading price of BNB is the overhead resistance for the asset. Whereas, the $304 mark is the 50-day SMA for BNB.
Although the competition was strong between the bulls and the bears, it was the bears who prevailed. They were able to subdue the bulls and moved the price of BNB in their favor.
With the recent movement of BNB, the bears have proven that they are in power and they may continue running the trend for BNB.
It is clear for now that the bulls will not be permitted by the bears to run the trend as they, please. Therefore, the bulls will have to put up a great show to challenge the bears and push BNB’s price higher.
RSI Movement for BNB
The movement of the relative strength index for BNB is in the downward direction. It is constantly losing its momentum and the price of the asset may continue losing its weight as well.
With the trend shifting sides with the bears, the price of BNB may continue moving downwards. The RSI is currently residing at 46 and it has a higher potential of moving below that score.
The market sentiments are currently going with the bears, which means that the asset will continue losing its value.
If a positive factor does not come into support BNB, its value may plummet to $280 and then move lower than that.
Hot Inflation Data
The general factor impacting not only the value of BNB but the entire crypto market is the rise in the inflation rates.
As the inflation rates go up, the Feds have no choice but to keep pushing the interest rates higher. If it is not an increment, then the trading price of the dollar would surge, and it is already going in that direction.
With the dollar price rising, the trading prices of the cryptocurrencies would continue losing their power and strength against the greenback.
Binance is Losing Credibility
While most of the crypto industry is moving in a positive direction, Binance is facing a rather difficult situation.
Binance seems to have come under great scrutiny by the regulatory authorities in the United States. Initially, the exchange came under fire after sharing its proof-of-reserve audit report, which was not mainly correct.
Later, the exchange’s stablecoin Binance USD (BUSD) faced issues as the company behind the issuance of the stablecoin, Paxos was banned from issuing the stablecoin.