Navigating a Bearish Phase and Death Cross

BNB price may react to recent market trends, particularly with BNB daily trading reaching its lowest point since February 25th. From March 31st to April 1st, there was a significant change in the SAR indicator, which transitioned from a bullish pattern to a bearish pattern.

At the same time, the EMA line shows a consolidation pattern. However, there is a worrying trend of the short-term EMA line getting closer to the long-term EMA line, which could lead to the formation of a death cross.

BNB’s daily trading amount is decreasing.

Since January 2024, BNB’s trading volume has been stable with some peaks. However, its price skyrocketed from $313 on January 1st to $632 by March 15th. This increase represents a 101% increase in just two months. This rapid rise indicates that BNB’s price is likely driven more by bullish trends in the crypto market as a whole than by fundamentals.

Compared to the top 21 cryptocurrencies by market capitalization, excluding memecoins and stablecoins, BNB’s year-to-date (YTD) growth is significant, surpassed only by Bitcoin Cash, TON, and Stax. However, the recent decline in daily trading and the decline in the 7-day moving average could indicate that investor interest in BNB is waning.

The company’s daily transactions peaked at 6.2 million on February 22nd. However, in recent days, that indicator has been consistently decreasing. The number of visitors decreased from 4.4 million on March 28 to 3.6 million on March 31. This is the lowest level since February 25th.

This cooling in sentiment may be due to the strong rally earlier this year, which prompted investors to look for other ventures that offer higher return on investment (ROI).

Read more: Binance Coin (BNB) Price Prediction 2024/2025/2030

BNB SAR metric recently changed status

From March 28th to March 31st, BNB experienced a bullish phase as evidenced by the SAR (Stop & Reverse) indicator, during which the price rose from $564 to $620.

The SAR indicator is a technical analysis indicator used to identify possible reversals in the price direction of an asset. This appears as a series of dots above or below the price line on the chart, indicating bullish or bearish movement, respectively.

However, a significant change occurred between March 31st and April 1st, when the SAR indicator moved from a bullish state to a bearish state. The continuation of this bearish trend is indicated by a further decline in the dot, suggesting that BNB is heading towards a plateau or could soon enter a strong correction phase.

This change in the SAR indicator is of great importance to investors, as it provides insight into a possible decline in BNB’s price and signals caution in the short term.

BNB Price Prediction: Back to $500?

BNB’s EMA line suggests a potential downtrend on the horizon, as the short-term line is about to break below the long-term line, a phenomenon known as a death cross. This technical indicator is important because it often represents a bearish signal and predicts a significant price decline.

A death cross occurs when the short-term moving average falls below the long-term moving average, indicating weakening market momentum and can portend a bearish phase in BNB price.

The EMA (exponential moving average) line is a moving average that puts more emphasis on recent price data compared to a simple moving average. Because of its high sensitivity to new data, the EMA is particularly useful for identifying trend direction more quickly. Given the impending bearish signal from the death cross, BNB price could soon test the key support level at $535.

Read more: BNB: A comprehensive guide to what BNB is and how it works

If this level is not sustained, the next potential floor is $498, indicating further pullback. Conversely, if BNB manages to reverse its fortunes and enter an uptrend, investors will see BNB challenge the $620 resistance level and then $645, indicating an important threshold for a potential price recovery. It will be seen as such.