Altcoins

Has Binance Coin [BNB] hit a brick wall after gaining 17% within eight days?

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms 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 seemed 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

Has Binance Coin hit a brick wall after gaining 17% within eight days? Here is what the charts say

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 stage at $224 as nicely.

The Relative Power Index (RSI) climbed previous 60 prior to now couple of buying and selling periods, to trace at robust 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

Has Binance Coin hit a brick wall after gaining 17% within eight days? Here is what the charts say

Supply: BNB/USDT on TradingView

The four-hour chart confirmed the significance of the mid-range level prior 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 and pressure Binance Coin bulls to cede the territory they fought arduous to regain since late June.

One other issue to notice was the dearth of buying and selling quantity in latest weeks- the buying and selling quantity was reasonably flat. As soon as once more this demonstrated the dearth of a robust pattern and strengthened the thought of a spread formation.

Has Binance Coin hit a brick wall after gaining 17% within eight days? Here is what the charts say

Supply: BNB/USDT on TradingView

The RSI was at 55 and appeared to be headed decrease. Therefore, though momentum was bullish, a gentle pattern was not but established. The On-Stability Quantity (OBV) was additionally but to rise above a resistance stage from June. There was a notable lack of shopping for quantity out there, therefore a push previous $245 won’t materialize.

The Chaikin Cash Circulation (CMI) additionally dropped over the previous few days, to level out the weakening shopping for strain 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 creating. Whereas a breakout from the vary can’t be dominated out, the worth motion and the indications 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 might have extra hopes of success.

Source link

Leave a Reply

Your email address will not be published.

Back to top button