Binance Coin’s price has fared slightly better than most of its counterparts of late. In fact, its weekly gains of 1.90% were the highest amongst the top 10 coins by market cap. What was even more impressive was that these gains were made despite a bearish week for most altcoins.
However, bearish sentiment eventually spilled into BNB’s market as well as the digital asset registered some losses over the last 24 hours. At the time of writing, Binance Coin traded at $315, down by 4.5%.
Binance Coin Daily Chart
BNB’s most recent surge came via an ascending triangle breakout which represented gains of 7% from the upper trendline of the pattern. However, the 50-SMA (yellow), which had been trading bearish since 19 May, acted as a resistance line and denied further upside. Interestingly, Visible Range’s POC lay around the $340-mark and clashed with the mid-term moving average line.
Since the breakout, BNB has gradually declined due to bearish cues from the broader market, and its price was unable to maintain above a defensive region of $320. The next support zone rested at the $290-295 mark- a region that clashed with the 200-SMA (green). A close below this level could open the gates for an even sharper decline over the coming days.
Directional Movement Index’s -DI and +DI lines were in close proximity, while an ADX reading of 18 suggested a weak trend in the market. Relative Strength Index traded in neutral 50 zone but did point south at press time, indicating that downwards pressure could rise moving forward. MACD’s histogram showed that bullish momentum was reducing over the past week. If a bearish crossover develops between the Signal line and MACD line, some more downside can be expected.
BNB’s defensive line of $295 was bolstered by the 200-SMA (green) and could crunch anticipated losses in the coming days. The region might even trigger a temporary rally but gains would likely remain below the $340-mark. Meanwhile, traders must be cautious of a close below $320 as this could result in another 23% retracement towards the 22nd June swing low of $224.2.