A Route With Critical Metrics in Giant Altcoin: It Could First Crash and Then Rise Hard!
According to popular analyst Ali Martinez, multiple Blockchain metrics show that strong altcoin Binance Coin may experience a downward trend.
Binance Coin (BNB) is listed on Poloniex! Does it affect the price?
Binance Coin (BNB) is expanding its reach after announcing that Poloniex will list crypto money on its individual platform. This move will provide access to cryptocurrencies for millions of individual investors worldwide. Although this listing brought support for different new trading pairs, including BNB / BTC, BNB / USDT and BNB / TRX, the announcement did not attract interest among market participants. The price of this altcoin continues to merge in a descending triangle without giving a clear indication of the next move.
According to renowned analyst Ali Martinez, exceeding the $ 17 support level could trigger a sales transaction that lowers Binance Coin to $ 16, while it may exceed $ 17.4 and send the price to $ 18.4. Despite the vague outlook that BNB offers, multiple chained metrics are drawing a better picture of what the future is. Despite Poloniex’s listing, the social activity around Binance Coin didn’t really get any improvement on Twitter or other social media platforms as expected.
What do critical metrics point to in strong altcoin? Ali Martinez explains
Instead, BNB has entered the area of negative emotion since the beginning of the month. As the focus of investors seems to be shifting towards cryptocurrencies with small market value, the volume of emotion consumed by Binance Coin is now at -1. According to Ali Martinez, this can be seen as a negative sign, based on its correlation with last year’s price. Indeed, every time BNB’s social sensitivity drops to 0, its price tends to drop significantly.
For example, in late April 2019, the price of this altcoin dropped about 30% after its weighted social sensitivity fell to -2.22. A similar situation took place in July of the same year, which caused the BNB to drop by more than 50%. If history repeats itself, Binance Coin may be poised for a downtrend, according to Ali Martinez. The steady decline in chain volume has contributed to the pessimistic look since the June 2 summit, when BNB surpassed $ 18. Such a steep deviation between price and volume represents another negative sign, according to the analyst, which shows that momentum is gradually increasing for a collapse.
What’s next for Binance Coin? Here are the target levels
If these on-chain metrics are verified, Binance Coin is likely to come out of the ascending triangle, according to the analyst. Returning to $ 16, according to the analyst, will encourage unsuccessful investors to re-enter the market. According to a new capital inflow, Ali Martinez, he can finally push Binance Coin to go beyond the general resistance and walk towards the new annual highs. Due to the unpredictability of the crypto money market, it is important to wait for the verification of support or resistance before entering any trade, according to the analyst.