In brief:
- Binance Coin was not spared by the crypto market turmoil seen on the 12th and 13th of March.
- BNB dropped to a level of $6.40 last seen in February of 2019.
- The prominent alt-coin might reclaim $14 but the general trend is still in a downward trajectory.
- However, possible news developments at the exchange might prop the value of the coin.
In the past few weeks, crypto traders have had a hard time utilizing known Technical Analysis techniques to determine the future of Bitcoin and other prominent alt-coins such as Binance Coin (BNB). The fact remains that BTC and the entire crypto market is being tested for the first time by a global recession brought about by the Coronavirus pandemic. BTC has never experienced a period of economic uncertainty like the one at hand for it was introduced right after the 2008 financial crisis.
Binance Coin (BNB) Price Analysis
Let us, therefore, try to decipher the few clues we have through the BNB/USDT chart to determine the possible direction of the famous alt-coin. For this, we shall start with the 6-hour chart below.
To begin with, BNB’s current price of $12.67 is above both the 50 (white) moving average and the 0.382 Fibonacci retracement level. Both are providing considerable support at $12.30.
Secondly, we discover a rising wedge is forming with a ceiling around $13.50. Rising wedges usually resolve with the asset in question failing to gather enough momentum to move above its upper boundary. There is also the 0.5 Fib level of $14.132 acting as a short term resistance.
Thirdly, there has been a continual reduction in trade volume from the 12 – 13th of March to date, but the crossing of the MACD lines might provide a slight glimmer of hope for the bulls.
Concluding Thoughts
The 6-hour BNB/USDT chart has revealed to us that the prominent alt-coin has formed a rising wedge with an upper boundary of around $13.50. Additionally, there seems to be some level of bullish momentum as seen through the crossing of the MACD lines in an upward trajectory above the baseline. However, rising wedges usually result in the asset failing to move past the upper boundary. Considering this scenario, BNB/USDT could momentarily wick to $14 before breaking down towards the 0.236 Fib level of $10.05.
As with all technical analysis, it is advised to also keep your eyes and ears on high alert for any fundamental factors that may turn the tides. They include news developments regarding the exchange or positive news related to winning the war against COVID19. For instance, the team at Binance recently announced the launch of a VISA crypto debit card in the coming days. The card will have BNB at its core as one of the 2 ways users can load funds on the card. Therefore, shorting BNB/USDT might be carried out with a very tight stop loss. Conversely, one can decide to ladder in some longs using the Fibonacci levels shared.
(Feature image courtesy of JC Dela Cuesta on Unsplash.)
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
