Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Binance Coin Barely Hangs on Above Long-Term Support

CryptocurrencyJul 21, 2021 13:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Binance Coin (BNB) Barely Hangs on Above Long-Term Support

Binance Coin has bounced at a long-term Fib support level at $268 and is trading inside a symmetrical triangle.

The direction of the next movement is undetermined, and will likely be decided based on whether or not BNB breaks down below the support line of the triangle.

Long-term Binance Coin movement

BNB has been moving downwards since reaching an all-time high of $691.77 on May 10. The downward move continued until a low of $211.70 was reached on May 23.

The bounce that followed left a lower wick in place and validated the $268 area as support. This is the 0.618 Fib retracement support level when measuring the entire upward movement beginning in March 2020.

Currently, BNB is trading at $285, just above this support level.

Despite the bounce, technical indicators are bearish. The MACD is almost negative, the RSI is below 50, and the Stochastic oscillator has made a bearish cross.

Neutral BNB pattern

The daily chart shows that BNB has been trading inside a symmetrical triangle since it first bounced on May 19. More recently, it bounced at the support line of the pattern on July 21.

The daily close is extremely important, since it could create a bullish engulfing candlestick if it manages to sustain the current level until the daily close.

However, while the symmetrical triangle is often considered a neutral pattern, it’s transpiring after a downward move. Therefore, a breakdown would be more likely.

In addition to this, technical indicators are bearish. The MACD has given a bearish reversal signal, the Stochastic oscillator has made a bearish cross, and the RSI is below 50.

If a breakdown occurs, BNB would likely revisit the $200 levels once again. Conversely, the closest resistances are at $395 and $508. These are the 0.382 and 0.618 Fib retracement resistance levels.

Cryptocurrency trader @TheEuroSniper outlined a BNB chart, stating that the price could fall all the way to the $170 region. In order for this to occur, a breakdown from the current symmetrical triangle is necessary.

Wave count

The wave count indicates that BNB is in wave B of an A-B-C corrective structure.

However, the exact shape of the B wave is not yet clear.

The first scenario indicates that the B wave has taken the shape of a symmetrical triangle, as outlined in the previous section.

If correct, BNB could revisit the resistance line of the triangle before breaking down.

An increase above the most recent swing high at $340 (red line) would invalidate this particular wave count.

The second scenario suggests that the B wave is contained inside an ascending parallel channel. In this case, BNB could increase towards the resistance line of the channel near $390 before breaking down.

The count would be invalidated by a decrease below the July 20 low of $254 (red line).

So, whether BNB drops below $254 or increases above $340 will likely determine the direction of the trend.

Continue reading on BeInCrypto

Binance Coin Barely Hangs on Above Long-Term Support
 

Related Articles

Bitcoin reclaims $51,000 as risk appetite improves
Bitcoin reclaims $51,000 as risk appetite improves By Investing.com - Dec 07, 2021

By Samuel Indyk Investing.com – The price of Bitcoin was above $51,000 on Tuesday as risk appetite improved amid positive early signs that the Omicron COVID variant may be less...

Ethereum Climbs 10.80% In Rally
Ethereum Climbs 10.80% In Rally By Investing.com - Dec 07, 2021

Investing.com - Ethereum was trading at $4,384.95 by 10:21 (10:21 GMT) on the Investing.com Index on Tuesday, up 10.80% on the day. It was the largest one-day percentage gain since...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email