BNB Struggles to Reclaim Ascending Channel Despite VanEck ETF Move

Key Takeaways

• VanEck has filed a preliminary trust for a BNB ETF, but the price remains around $600.
• Aroon indicator suggests a bearish trend, with Aroon-Down at 85.71% and Aroon-Up at 42.86%.
• Sentiment remains negative, indicating weak confidence, with analysis showing a potential drop to $575.
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BNB, the 5th largest cryptocurrency in terms of market cap, has joined the long list of assets that could have an exchange-traded fund (ETF). This development comes after VanEck filed a trust that precedes a formal BNB ETF application with the U.S. SEC.

Despite the move, BNB’s price did not significantly increase. As of this writing, the cryptocurrency is still hovering around the $600 mark.

This has erased some of BNB’s gains between mid-March and last week. So, what’s next for BNB?

BNB’s ETF News Overshadowed by Bearish Price Action

While several asset management firms have applied for an ETF for several altcoins, the VanEck registration on March 31 is the first involving BNB. However, it is important to note that it is still a preliminary step.

However, if approved, the ETF will grant investors exposure to BNB without buying the cryptocurrency. In a highly bullish market condition, this news would have pushed BNB’s price by at least 10% within an hour.

However, in the last 24 hours, the coin, currently trading near $603, produced a 2.5% decrease. As a result, the daily chart showed that BNB failed to revert to the ascending channel formed between March 11 and 25.

Amid this price action, the Aroon-Up (orange) has fallen to 42.86%, while the Aroon-Down (blue) stood at 85.71%.

A high Aroon-Up (near 100) indicates a strong uptrend. On the other hand, a high Aroon-Down value indicates a dominant downtrend. Therefore, the chart below reveals that BNB’s price is more inclined to a downturn than a recovery.

If this trend continues, the coin risks falling below the $602 support and might not retest the resistance near $638.

Furthermore, on-chain data from Santiment shows an increase in Weighted Sentiment. However, the reading remains in the negative region.

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Weighted Sentiment uses social data to measure the remarks market participants have about a cryptocurrency. When the reading is positive, it means most comments about the crypto are bullish.

However, in this case, the reading is negative, indicating mostly bearish remarks. If this remains the same, then BNB might struggle to see increased demand, which could negatively affect the price.

BNB Likely to Slide

Looking at the daily BNB/USD chart again, the Awesome Oscillator (AO) is in the positive region. However, it has flashed red histogram bars, indicating that the momentum around BNB is not entirely bullish.

In addition, the Money Flow Index (MFI) reading has dropped, signifying low buying pressure. Should this trend continue, BNB’s price might fall to $575 at the 0.236 Fibonacci level.

Should demand continue to slide, the altcoin’s value might drop to $508. However, if the sentiment around BNB becomes bullish, this trend might change.

In that situation, the cryptocurrency’s value might rise to $650. If buying pressure increases, it could rise to $685.