• BNB retreats from the recent high on a combination of technical and fundamental factors.
  • Japanese cryptocurrency exchange Fisco filed a lawsuit against Binance.

The history implies that Bitcoin may follow BNB's lead and break from the range to the upside.

Binance Coin, BNB, hit the new high of $31.27 before the tide changed. The coin dropped below $30.00 to trade at $28.70 by press time. While BNB/USD is still over 27% higher week-on-week, the technical indicators send warning signals. The bearish momentum may start gaining traction.

Binance Coin takes the 8th place in the global cryptocurrency market rating with the current market value of $4.2 billion and an averaged daily trading volume of $1.6 billion, which is a significant increase from the previous week. Being a native token of Binance, it is most actively traded on Binance, on this trading platform.

Binance Coin has run out of luck

BNB was one of the most successful digital assets out of the top-10 during the previous week. The upside momentum has been fuelled by a steady flow of positive fundamental news, including the launch of Binance Smart Chain. On this platform, yield farmers can stake their BUSD and BNB to get rewards in various coins. 

Binance has been aggressively expanding into the booming DeFi industry recently. Despite the harsh criticism from the community, the new Chanpeng Zhao initiative seems to be gaining traction. As the FXStreet has previously reported, the total value of the Binance-backed stablecoin BUSD nearly doubled in ten days amid the growing interest in the Binance DeFi offering.

However, the tide has changed for BNB recently as the coin reversed all the gains of the previous two days. The sell-off might have been a factor of technical and fundamental triggers. 

Thus, the Japanese cryptocurrency exchange Fisco filed a lawsuit against Binance for alleged involvement in the laundering of $9 million stolen from Zaif hack in 2018. A 33-page claim was filed in the Northern District Court of California on Monday, September 14. Fisco believes that the hackers managed to convert the stolen coins to other assets and cash out on Binance due to the platform's lax KYC (Know Your Customer) policies. 

The news might have served as a trigger for the coin's downside correction from overbought territory. Let's have a closer look at the charts to see if the bulls can retake control.

BNB/USD: The technical picture

On the daily chart, BNB/USD has created a long-legged Doji candle that may qualify as an Evening Star candlestick pattern. If the bearish momentum is sustained into the end of the day, the pattern will be confirmed, and the sell-off may be extended towards the next bearish target of $22.00, reinforced by an upside-looking trend line. 

BNB/USD daily chart

On the 4-hour chart, BNB/USD may retest the bullish trendline at $27.00. This barrier may slow down the sell-off and initiate a recovery towards the psychological $30.00. However, if it is broken, the downside momentum will gain traction with the next focus on $24.00. The 4-hour SMA50 located below this area adds credibility to this barrier. Once it is out of the way, the mentioned above longer-term support of $22.00 will come into focus.

BNB/USD 4-hour chart

To conclude: BNB/USD may develop the bearish correction towards $24.00, which is reinforced by the 4-hour SMA50. The critical barrier comes in the form of an upside-looking trendline and the daily SMA50 at $22.00. On the other hand, a sustainable move above the psychological $30.00 will negate the immediate bearish scenario and allow for an extended recovery.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP