Bancor’s native cryptocurrency BNT has been experiencing sideways value motion because it entered a consolidation zone. This will doubtlessly level on the increase of a momentum for a breakout or a breakdown, however the when side of it’s anyone’s guess.
BNT traded at $2.16 after extending its draw back by 5.57% within the final 24 hours on the time of this press. Its value motion hovered inside the identical value zone for the final 5 days and such a consolidation typically tends to end in a breakout.
Nonetheless, it present trajectory suggests {that a} breakdown could be doubtless, however what if that could be a non permanent selloff earlier than a rally? It’s thus essential to judge the place the consolidation is occurring to know the doubtless breakout path.
Supply: TradingView
BNT’s newest value motion pushed beneath beneath its 50-day transferring common. It briefly crossed above it in direction of the tip of March whereas the lower cost degree additionally pushed additional beneath its RSI impartial zone. Its MFI indicator at the moment means that the value has already entered the buildup zone.
BNT’s on-chain metrics
BNT’s value drop and sideways exercise displays the rise in change outflow volumes which barely outweigh the change inflows. Nonetheless, each registered a big enhance in the previous couple of days.
Supply: Glassnode
In the meantime, Santiment’s onchain quantity dropped from round 38 million BNT between 15 and 16 April to round 16 million on the time of writing.
Its MVRV ratio dropped to its lowest weekly degree at -10.76% on 14 April and has improved barely to -9.34%. The ratio reveals that many BNT holders are at the moment out of the cash and may need to carry on till they break even. This will likely translate to decrease promoting strain at present ranges.
Supply: Santiment
In abstract, BNT is at the moment in a wholesome accumulation zone based on its on-chain metrics which align with the MFI. The decentralized platform simply introduced the Bancor 3 governance approval and a group name for its beta in preparation for its scheduled mainnet launch. These developments might help a sentiment change in favor of the bulls.
