Binance Coin (BNB) Price Analysis: Impending Fall Before The Great Boom?
Binance Coin (BNB): Fall Before The Boom ?
The market for cryptocurrencies has been quite interesting in recent days. Bitcoin, the main reference of the ecosystem is monopolizing not only the attention but also the capital of the market, with an ascendant domain of 58% at the time of writing, in an incipient ecosystem that struggles to reach $ 190 billion dollars.
Although it is to be expected that as the domain of the leading cryptocurrency grows, the volumes and therefore the prices of the altcoins will decrease, it is not surprising that Binance Coin is the worst hit in the top ten of the market, among other things, by the consequences of the recent scandal about hacking their platform.
It was expected that the direct consequences on the limitation of withdrawals and deposits to the platform, have generated a sharp drop in the price of the token, since it is the main fuel that feeds the exchange.
At the time of writing, the BNB token is quoted at an average of $ 18.93 per unit, with a fall of almost nine percent and a capitalization market that has been reduced to $ 2.6 billion to send the token back to position number eight of the general ranking of cryptocurrencies.
For the short term, the BNB chart is discouraging. A strong downward channel in a period of seven days has led to a depreciation of the asset by almost 26%, falling from levels close to $ 25 to the current level of contribution.
BNB has broken the SMA for ten days, indicating a sharp drop in the next three days, before the normal course of its prices recovers.
Aroon Uptrend remains at the bottom of the chart, signaling the bearish moment of the token, but has begun to fall slowly, which suggests that once the restrictions in Binance Exchange are lifted, we could see a resurgence in prices.
This earlier theory is glimpsed by Chaikin Money Flow, which slowly begins to come out of the negative levels of capital outflow.
In the medium term, the BNB token is a little uncertain its outlook. So it is feasible two scenarios raised in the graph that depend on the conjugation of factors so that one or the other is definitely fulfilled.
As we can see, the key resistance levels are in the value of 23, projected from the isometric triangle formed between the maximum and minimum for the 1D plot in Binance.
If the token manages to stay above the lower edge of the triangle in the next three days, we will be observing an Elliot pattern to be fulfilled in its second wave in the medium term up to levels of R1 ($ 26.69).
If, on the contrary, it manages to be displaced to lower levels and leaves the projected triangle, we could see BNB fall to levels of S1 ($ 15.38), which would be coincident with the projected bearish cross between the 30-day exponential moving average and 100 days.
Then we would see BNB recover to the maximum point of key resistance ($ 23.28) and then fall to average price levels around the twenty dollars.
The RSI indicator has been static in the last few hours, but at the bottom of the chart very close to the oversold zone, which could lead BNB to contract even more in its spot price.
In conclusion, Binance and its development team, led by CZ, must be able to convince the crypto community, that the world's largest exchange and even not infallible, is still a safe place to conduct operations in an expeditious manner.
If the security audit does not generate surprises greater than what happens in this type of case, we could see the token take off again to previous maximum levels as operations resume. Without a doubt, the coming days will be vital both for BNB and for the ecosystem in general.