There has been a significant drop in the overall value of the cryptocurrency market over the past few days. Binance coin also noted a strong decreasing value. But she also started to recover in the short term.
The current price of the digital asset has traded at $ 40.27. Which represented a great move from the low of $ 36.71.
Binance Coin Hourly Chart
Source: BNBUSD, TradingView
The above chart from Binance Coin noted the price rally in an ascending channel. However, the price reached the resistance at $ 40.77 and remained low. The general market trend is bullish, there could be another drop in the value of BNB.
This could provide a shorting opportunity for traders after price retests resistance.
Reasoning
BNB’s low price level pushed it into the overbought zone. But the recovery had pushed him into the zone of balance. The current rally has brought it closer to overbought, but resistance has kept it in the overbought zone. Meanwhile, the moving average of 50 is below the price bars, indicating the uptrend of the market.
However, the Awesome Oscillator noted reduced momentum in the market. As the market recovered from the fall and reached consolidation, the AO noted a loss of momentum. This could indicate that selling pressure is evolving in the market.
Crucial levels
Admission: $ 39.92
Stop-Loss: $ 40.71
Cash in: $ 38.37
Risk-reward: 1.94
Conclusion
The Binance Coin market has moved sideways. There might be a drop in price as it exits the ascending channel. However, the price may re-test the resistance at $ 40.77, before the selling pressure changes and traders can take profit at $ 38.37.
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