BNB Soars 11% in 2021 – But How Long Will the Bullish Trend Last?

• Binance Coin (BNB) entered the first week of 2021 with a 11% gain in the last seven days.
• Despite the bullishness of the market, investors must be cautious as BNB’s Relative Strength Index (RSI) was in an overbought position and its MVRV ratio was up significantly, indicating a possible market top.
• Despite the negative metrics, BNB remains popular in the crypto space, with a slight uptick in daily active addresses.

Binance Coin [BNB] started the year 2021 with a bang, gaining 11% in the last seven days and trading at $275.62 at press time, with a market capitalization of more than $44 billion. While this bullishness might have excited crypto traders and investors, one must be cautious, as there are a few concerning indicators that could point to a possible market top.

Relative Strength Index (RSI) is a technical indicator used to measure the magnitude of recent price changes in order to determine whether a stock is overbought or oversold. CryptoQuant’s data revealed that BNB’s RSI was in an overbought position, which could be a warning sign of a trend reversal in the coming days. At the time of writing, BNB’s price had already declined by over 1.3% in the last 24 hours, indicating a possible price drop.

Despite the possible market top, BNB remains popular in the crypto space. It was one of the top five cryptocurrencies by social contributors on LunarCrush, and Santiment’s chart showed a slight uptick in BNB’s daily active addresses. However, the MVRV ratio was up considerably, which is a bearish indicator.

Therefore, although BNB’s price has been on a bullish trend, investors should be aware of the signs that could signal a possible market top. An analysis of the on-chain metrics and other indicators should give a better idea of where the price of BNB is headed in the coming days.

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