The fear and uncertainty currently present in the crypto market has resulted in the inability of some assets like Binance Coin and Solana to surge. Most tokens in the top 10 by market cap rankings have seen more stability than volatility lately.
Of the two highlighted projects, the worst-hit by this trend is SOL as it has been on a constant downtrend. We may conclude that February was very bad for the cryptocurrency as it failed to close any of the previous five weeks in the green.
BNB, on the other hand, is also experiencing the same sentiment. However, on a few occasions during the timeframe under consideration, the exchange token closes the intraweek session with gains.
Indicators, as well as fundamentals, have not been of any help to these assets as both are mostly silent or bearish. What has changed and how can that affect the performance of these cryptocurrencies?
Binance Coins and Solana May Surge
Based on the current state of the market, there may be no hope in sight for both tokens, especially SOL. However, the constant drop in price has resulted in indicators printing bullish signals.
To track this slight change, we will be using the Moving Average Convergence Divergence (MACD). By focusing on the histogram associated with this indicator, we noticed a slight decrease in selling pressure on the weekly chart.
The image below further illustrates this claim. We observed that over the past four weeks, MACD’s histogram has been printing a gradual reduction in bearish actions on BNB.
How is this of any importance to the coin? A closer look at the Relative Strength Index, we noticed that in accordance with the previous metric, it has seen a lot of stability over the last four weeks.
The gradual decrease in selling pressure could translate into a buildup to more bullish actions. The last time RSI saw this amount of stability was last year, from April to August. After this pattern, the binance coin surged to an all-time high.
Solana is Also On the Same Path
The image below further illustrates this claim. We observed that over the past four weeks, MACD’s histogram has been printing a gradual reduction in bearish actions on SOL.
Similar to the binance coin, a closer look at the Relative Strength Index, we noticed that in accordance with the previous metric, it has seen a lot of stability over the last four weeks.
Solana has not seen this amount of stability since its introduction to the market. However, a gradual drop in RSI from May to July last year was followed by a massive uptrend that saw the asset record a new ATH and climb up the market cap ranking.
When Will The Downtrend Stop?
It is hard to predict with accuracy as to when the corrections will stop. Nonetheless, we observed that from the past year’s experience, both assets relied on strong fundamentals to halt their downtrend.
The market was flooded with a lot of bullish stories at the time. As the news-induced FOMO died down, most traders were already bullish on the asset and continued at the pump.
Your crypto deserves the best security. Get a Ledger hardware wallet for just $79!