Binance Coin (BNB) is roughly halfway to $1k, permabulls assert. The yo-yoing of price action in the past few days is nothing but another opportunity for hopeful traders to scoop the coin at a discount.
Binance Coin (BNB) Market Performance and Status
That might be the case.
A long shot? Perhaps.
However, for now, BNB is facing headwinds. Buyers’ momentum appears to be fading, at least reading from the candlestick arrangement in the daily chart.
At the time of writing, the Binance Coin (BNB) is relatively stable versus the greenback and sliding versus ETH and BTC on the same period. Still, nothing can be taken away from bulls.
BNB crypto prices are trending within a bullish breakout pattern, closing above June 2021 highs. Additionally, the coin is finding support at the middle BB—a primary level for bulls.
Even so, there are hints of weakness, a cause for pessimists to dismiss buyers. Their calls, nonetheless, would be futile if the coin finds support at the middle BB, rejecting bearish overtures and instead BNB bulls finding momentum to reverse above August 2021 highs sharply.
Accordingly, the reaction at around $520 can define the short-term bullish trend, even opening up BNB for even more gains towards all-time highs in the short term.
On the lower end, if BNB slides below support at the middle BB and around $440, the coin might discouragingly stutter back to $400 or worse in upcoming sessions.
BNB Bullish Divergence
A trader on Trading View picks out a bullish divergence pattern in the 4HR chart.
Even though BNB prices are still trending inside a descending wedge and the coin appear under pressure, a close above the minor resistance trend line could revive bulls.
In that case, the BNB price could rip higher in a buy trend continuation, ideally above $520.
At present, there are lower lows. Additionally, the divergence momentum indicator is turning from the oversold condition, a bearish divergence.
Bullish as the price formation is, traders are still cautious—and would only commit if there is a definite, confirmed trend.
Binance Coin (BNB) Slips below a Multi-week Support
Meanwhile, there has been a spoiler.
While traders maintain their positive outlook, bears continue to unwind gains.
At the time of writing, BNB/USDT prices are now trending below a three-week support trend line in the 3HR chart.
Noticeably, the slip in the early Asian session is with high trading volumes and a wide-ranging bar.
Technically, this could signal a downturn and the mark of price peaks.
All the same, what will confirm this is another leg down, driving BNB towards $400 in the short-term.
Interestingly, the break below is near the peak of the ascending wedge, a cause of concern for bulls because historically, such breakouts tend to define short-term to medium-term trends.
A close above $510—a crucial resistance level—would reverse the fortune for BNB bulls, igniting demand.
Spike in BNB Selling Volumes
Behind the sell-off is a surge in trading volumes which forced the coin below critical floors. Trading bots picked off unusual selling volumes in Binance, leading to a humongous bear bar in the 5-min chart.
— Volume Alerts (@TraderWisdom) August 31, 2021
While it could be minuscule to some traders, the shift in momentum and the injection of down momentum could further fracture, destroying ambitious bulls which appear exhausted.
Notably, there is a complete head-and-shoulder pattern, a bear pattern one trader observes on Twitter.
— Crypto Analyser (@noobtraded) August 29, 2021
If BNB bulls fail to surmount momentum, the coin could slip towards $400 in a retracement that might complete a retest of June 2021 highs.
Charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
This Defendant Wants a Judge to Declare Crypto Trading as Gambling in New York
Bitcoin Technical indicator at the “Fire Sale” Zone
Fidelity Investment Boss Says the Crypto Winter Is the Right Time to “Double Down”
How Ethereum’s Layer-2 Optimism Lost $17 million to a Hacker
New York Stablecoin Requirements Demand USDT to be Transparent
Price Analysis1 year ago
Sushiswap price adds 14% week-to-date, SUSHI rallies 40X in 7 Months
Learn2 years ago
Is Polkadot (DOT) A Good Investment?
Learn2 years ago
Yearn Finance Explained: A Simplified Guide to YFI
News2 years ago
How Will Bitcoin React if Either Trump or Biden Wins?
Price Analysis2 years ago
China FUD, Path back to $13k or $20k?
Learn2 years ago
Is Chainlink (LINK) A Good Investment?