Binance Coin: Why traders should prepare for this move

3d render golden bitcoins floating around dark background scaled

The crypto industry was left rattled by a recent tweet published by Poly Network which identified a $600 Million theft from its system. The decentralized finance platform, which functions on the Binance Smart Chain, Ethereum and Polygon, later added that the amount of money hacked is one of the biggest in DeFi history.

While the crypto community flocked in to condemn the attack, BNB’s value on the charts remained unhinged by the distressing news. In fact, the alt rallied alongside its competitors and even closed above a key resistance. At the time of writing, BNB traded at $388.2, up by 10% over the last 24 hours.

BNB 4-hour Chart 

Source: BNB/USD, TradingView

Since late-July, BNB formed higher highs and higher lows and climbed steadily on the charts. An upper and lower trendline were plotted on its 4-hour chart which created an ascending channel.

The recent jump also allowed prices to rise above $380- a region that initially capped BNB’s gains in early June. Now that BNB traded above this ceiling, its next target lay at its 3rd June swing high of $430 which seemed to be the last bastion of defense for a sharper price hike.

However, there were multiple warning signs in the market. For instance, BNB traded at the upper trendline- an area where traders usually exit their positions as per the pattern. Secondly, the price traded close to its weekly 20-SMA (not shown) which moved bearish. If these factors come into play, BNB could gear for a 8.5% decline towards its 20-SMA (red) and $360-support. A fall below this level would leave BNB vulnerable to an extended sell-off.

Reasoning 

The Relative Strength Index peaked in the overbought zone on the daily, 4-hour and hourly charts. These conditions usually act as a sell-signal before the next leg upwards. The more price sensitive Stochastic RSI was already on the cusp of a bearish crossover. On the other hand, the Awesome Oscillator formed a higher peak and traded at its highest level in over a month. A bullish outcome would be validated in case of a close above the $400-mark.

Conclusion 

Since BNB traded at the upper trendline of its up-channel, the alt was expected to experience some selling pressure. RSI peaked on three timeframes and called for stabilization. To negate such a thesis, bulls would need to target a rise above the psychological $400-mark.

Ronnie Huss

Ronnie Huss

Leave a Reply

Your email address will not be published. Required fields are marked *

Share:

Share on telegram
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

Related Posts

bitcoin
Bitcoin (BTC) $ 68,589.38
ethereum
Ethereum (ETH) $ 3,781.71
tether
Tether (USDT) $ 0.999832
bnb
BNB (BNB) $ 597.27
solana
Solana (SOL) $ 168.92
staked-ether
Lido Staked Ether (STETH) $ 3,781.04
usd-coin
USDC (USDC) $ 1.00
xrp
XRP (XRP) $ 0.524950
dogecoin
Dogecoin (DOGE) $ 0.163097
cardano
Cardano (ADA) $ 0.450788
the-open-network
Toncoin (TON) $ 6.51
shiba-inu
Shiba Inu (SHIB) $ 0.000027
avalanche-2
Avalanche (AVAX) $ 36.85
chainlink
Chainlink (LINK) $ 18.39
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 68,526.36
tron
TRON (TRX) $ 0.111869
polkadot
Polkadot (DOT) $ 7.08
bitcoin-cash
Bitcoin Cash (BCH) $ 469.37
uniswap
Uniswap (UNI) $ 10.94
near
NEAR Protocol (NEAR) $ 7.44
matic-network
Polygon (MATIC) $ 0.705561
litecoin
Litecoin (LTC) $ 85.40
pepe
Pepe (PEPE) $ 0.000014
internet-computer
Internet Computer (ICP) $ 12.25
fetch-ai
Fetch.ai (FET) $ 2.25
leo-token
LEO Token (LEO) $ 5.97
dai
Dai (DAI) $ 1.00
wrapped-eeth
Wrapped eETH (WEETH) $ 3,930.97
ethereum-classic
Ethereum Classic (ETC) $ 30.22
aptos
Aptos (APT) $ 9.35
render-token
Render (RNDR) $ 10.21
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,730.84
hedera-hashgraph
Hedera (HBAR) $ 0.102120
dogwifcoin
dogwifhat (WIF) $ 3.47
cosmos
Cosmos Hub (ATOM) $ 8.61
arbitrum
Arbitrum (ARB) $ 1.15
kaspa
Kaspa (KAS) $ 0.139356
mantle
Mantle (MNT) $ 1.01
immutable-x
Immutable (IMX) $ 2.22
filecoin
Filecoin (FIL) $ 5.87
crypto-com-chain
Cronos (CRO) $ 0.117469
stellar
Stellar (XLM) $ 0.106732
ethena-usde
Ethena USDe (USDE) $ 1.00
the-graph
The Graph (GRT) $ 0.310452
first-digital-usd
First Digital USD (FDUSD) $ 0.999987
blockstack
Stacks (STX) $ 1.98
arweave
Arweave (AR) $ 43.49
bittensor
Bittensor (TAO) $ 407.17
okb
OKB (OKB) $ 45.76
optimism
Optimism (OP) $ 2.50