- Binance Coin hits a barrier at $27, prematurely ending the bullish case for new yearly highs.
- BNB whales are confident that the crypto will resume the uptrend.
Binance Coin appears to be prematurely abandoning the mission to hit new yearly highs as explored extensively earlier in the week. However, the trading in the last 24 hours has been impressive, with over 10% in gains accrued. Yet, on hitting resistance at $27, the token has embarked on a downtrend again. BNB is trading at $26.18 at the time of writing amid a growing bearish grip, as emphasized by the Relative Strength Index (RSI).
BNB/USD hourly chart
-637354955696497789.jpg)
How far can this downtrend go?
At the moment, odds seem to be in favor of the bears. To ensure that BNB does not continue with the downtrend and dent the progress made over the last week, buyers must hold above short term support at $24. A rising wedge pattern could make things worse for the bulls if the trendline support is shattered. The move could boost selling pressure in such a scenario, forcing BNB below a crucial support at $22 and $20. The bearish leg could also quickly refresh levels at the primary support ($18).
BNB/USD 4-hour chart
-637354956498846595.jpg)
Another possible scenario is consolidation taking over, with the price remaining pivotal between $24 and $27. The sideways trading is brought to light by the leveling RSI in the 4-hour range. On the other hand, if the 50 Simple Moving Average makes a golden cross above the 100 SMA, BNB could altogether ignore the push for declines to $18 and resume the uptrend aiming for $30.
Binance Coin whales doubling down on the uptrend
According to data by Santiment, a leading on-chain analysis platform, holders of 100,000 to 1,000,000 BNB coins are stocking up in anticipation of the price to rally to new yearly highs (as discussed before). Whales are significant players in the market because of the volume of coins they move. This volume tends to pull the price either up or down.
BNB holder distribution
-637354957150410840.png)
Overall, the price is trending lower, especially when short time frames are considered. Support at $24 would go a long way in stabilizing the token. As more whales increase their holdings, Binance could eventually resume the uptrend towards new yearly highs. For now, it is essential to wait for a confirmed breakout or breakdown before going all-in on BNB.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum continues hinting at rally following reduced long liquidations
Ethereum has continued showing signs of a potential rally on Tuesday as most coins in the crypto market are also posting gains. This comes amid speculation of a potential decline following FTX ETH sales and normalizing ETH risk reversals.
HBAR price jumps 75% as BlackRock tokenizes Money Market Fund on Hedera
Archax, Ownera and The HBAR Foundation have enabled the first tokenization of BlackRock’s money market fund (MMF) on Hedera. Last year Hedera Council member abrdn’s successfully tokenized its MMFs on Hedera.
Bitcoin price holds above $66K as Morgan Stanley files prospectus to add BTC ETF exposure in two of its funds
Bitcoin (BTC) price remains range-bound, holding above the $63,000 level, while its upside is capped below $68,000, going against or delaying the assumption that the fourth halving would be a 'sell-the-news' outcome.
Crypto community reacts as BRICS considers launching stablecoin for international trade settlement
BRICS is intensifying efforts to reduce reliance on the US dollar after plans for a stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?