The Binance Coin (BNB) market has shown indecisiveness in recent days, with its price moving sideways, indicating that neither buyers nor sellers have enough momentum to move in a clear direction.
However, the uptrend of the key technical indicator suggests the formation of a bullish divergence. The BNB market segment is expecting a breakout and has begun preparing to accumulate the altcoin.
Binance Coin Accumulation Continues Despite Price Consolidation
Between September 6 and September 12, the price of BNB trended upward, attempting to break through long-term support formed at the $560 price level. However, since this attempt failed, the price of the coin changed without a strong upward or downward trend.
Interestingly, while BNB has been consolidating within a range, its Chaikin Money Flow (CMF), which measures the flow of money in and out of the asset, has risen, forming a bullish divergence.
This divergence occurs when the price of an asset moves sideways while its CMF rises. This suggests that buying pressure on the asset is increasing, although this is not yet reflected in its price.
Read more: Binance Coin (BNB) Price Prediction for 2024/2025/2030
A possible explanation is that the asset is being bought by smart money who are anticipating a breakout to the upside once the price has consolidated long enough.
The positive ratio of long and short positions in BNB confirms the bullish bias towards the altcoin. At the time of writing this article, this ratio, which measures investor sentiment, was at 1.04.
This suggests that more and more traders are opening long positions and expecting prices to rise.
BNB Price Prediction: Why a Breakout Above $598 Is Important
If these long positions succeed and BNB breaks out of the sideways trend and moves into an uptrend, the price could break above $560 and target the key resistance level formed at $598 since July. Since then, the BNB has tested this resistance three times, failing to break through in every attempt.
If this retest is successful, the coin could rise to a three-month high of $645.90.
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However, if the BNB price breaks out of the downtrend consolidation, its price will fall towards the support at $468.90, invalidating the bullish forecast above.
