Has Binance Coin [BNB] hit a brick wall after gaining 17% within eight days?
Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the opinion of the author.
Binance Coin [BNB], like each different token within the crypto market, has seen a downtrend since April. On the time, what gave the impression to be a bullish market construction turned out to be a bull entice that despatched the coin rolling downhill. On the time of writing, Binance Coin was on the verge of a breakout. Can the bulls flip the vary highs to help, or will the worth descend within the days to come back?
BNB- 12-Hour Chart
Supply: BNB/USDT on TradingView
In white was highlighted a spread that Binance Coin has been buying and selling inside since mid-June. The vary lows and highs lie at $205 and $245, with the mid-point at $225. The mid-point had confluence with a long-term help degree at $224 as properly.
The Relative Energy Index (RSI) climbed previous 60 up to now couple of buying and selling periods, to trace at sturdy bullish momentum. But, even because the RSI made the next excessive, the worth made a decrease excessive. Marked in orange on the chart, this signified a hidden bearish divergence. Because the long-term pattern was bearish, this might sign a transfer again towards the vary lows for Binance Coin within the coming weeks.
BNB- 4-Hour Chart
Supply: BNB/USDT on TradingView
The four-hour chart confirmed the significance of the mid-range level up to now three weeks. On the time of writing, the worth had seen a rejection on the vary highs. It remained to be seen whether or not the bears can comply with by way of and drive Binance Coin bulls to cede the territory they fought exhausting to regain since late June.
One other issue to notice was the shortage of buying and selling quantity in latest weeks- the buying and selling quantity was quite flat. As soon as once more this demonstrated the shortage of a robust pattern and strengthened the thought of a spread formation.
Supply: BNB/USDT on TradingView
The RSI was at 55 and seemed to be headed decrease. Therefore, though momentum was bullish, a gentle pattern was not but established. The On-Steadiness Quantity (OBV) was additionally but to rise above a resistance degree from June. There was a notable lack of shopping for quantity out there, therefore a push previous $245 may not materialize.
The Chaikin Cash Movement (CMI) additionally dropped over the previous few days, to level out the weakening shopping for stress out there behind Binance Coin.
Conclusion
The OBV was at resistance on the four-hour chart, whereas the 12-hour RSI confirmed a hidden bearish divergence growing. Whereas a breakout from the vary can’t be dominated out, the worth motion and the symptoms overwhelmingly pointed towards a rejection on the vary highs. If the Binance Coin bulls can defend the $225 space and consolidate, the subsequent try at breaching the vary may have extra hopes of success.
