- Binance Coin presents sell signals even as the bearish scenario awaits a confirmed breakout from a descending triangle.
- Binance whales have started to offload their wallets, putting more selling pressure on current price levels.
Binance Coin had a particularly yielding trading period at the beginning of September. Although BNB showed signs of ascending to new yearly highs, the uptrend stalled at $33.50. Following the barrier, Binance Coin embarked on a downtrend below a descending trendline. On the downside, support has been established at $25. At the time of writing, BNB/USD is trading at $26 amid a strengthening bearish trend.
Binance Coin market update chart
The rally to the highs above $30 was mainly attributed to Binance increased involvement in DeFi. The exchange has supported several DeFi tokens while launching new products such as Harvest that give users the ability to generate income by lending Bitcoin and other non-Ethereum platforms. Binance hopes to compete with DeFi platforms such as Yearn.finance, UniSwap and MarkerDAO by allowing users to collateralize debt positions (CDPs) and get stablecoins such as USDX.
Descending triangle breakdown in the offing
The 4-hour chart shows Binance Coin trading at the apex of a descending triangle pattern. Patterns of this nature are used to signal trend continuations. At the moment, BNB is holding above the triangle support. The downside is safe as long the triangle support remains intact. However, if shattered, a breakdown could ensue, pushing Binance through crucial support areas at $22 and $18 as previously discussed.
From a technical perspective, Binance Coin has resumed the downtrend. For instance, the Relative Strength Index (RSI) has not recovered above the descending trendline. Besides, the indicator could soon refresh the oversold region, a move that could spark a selloff as the price explores the support areas at $22 and $18.
BNB/USD 4-hour chart
Meanwhile, the 100 Simple Moving Average (SMA) is likely to offer support, hence holding BNB above 25. If consolidation takes over at that point, the downtrend to $22 and below will be invalidated altogether. On the upside, gains above the 50 SMA could pave the way for action above $30, thereby revamping the bullish case to new yearly highs.
Binance whales reduce their holdings
As Binance seeks support from highs of $33.50 in September, whales are beginning to reduce their holdings, perhaps anticipating the price falling further. Data provided by Santiment shows that wallets holding between 10,000 and 100,000 BNB tanked from 51 on September 2 to 45 on September 17. There is also a downward trend in the wallets holding between 100,000 and 1,000,000 BNB.
Looking at the other side of the picture
A shorter timeframe analysis shows buyers are working hard to ensure that the bearish trend is invalidated without fail, especially now that $25 is short term support. Their effort is highlighted by the Moving Average Convergence Divergence (MACD) as it moves towards the midline. The indicator fell to -0.23 over the weekend but could soon cross into the positive region.
BNB/USD 1-hour chart
A bullish divergence from the MACD hints that buy orders are on the rise. Moreover, if the 21 SMA resistance is turned into support, then BNB will embark on the upward roll towards $30. Note that the 50 SMA resistance at $26.73 must also come down for gains to $30 to come into the picture.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
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.
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.
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.
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.
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.
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.