BNB has seen a pretty significant bounce from $13.88 but the bears are still in control. The next few days are going to be critical for the bulls which need to set a 4-hour uptrend as fast as possible.
The digital asset has been one of the strongest cryptocurrencies throughout 2019 and continues to remain really bullish long term. The daily chart is currently in a heavy downtrend and the RSI is still quite overextended.
BNB is performing in the same way it did back in September when it crashed from $20 down to $15. The last time, BNB traded sideways for around 2 weeks before taking off, could history repeat itself?
Lagging Market Dominance
BNB has been slowly gaining market dominance during 2018 and has seen a huge spike during the first few months of 2019 when it got up to 1.91% market dominance. However, the last 3 months have been quite dull for BNB and the digital asset hasn’t been able to gain more market dominance.
According to Colin Muller, Binance Coin could potentially reverse in the next few days but the possibility of further downside is also present. It seems that both short and long traders have the chance to strive right now.
Was the Hype Behind BNB Overrated?
Although BNB has been outperforming most cryptocurrencies during the first half of 2019, the only reason for its success has been Binance, the exchange. Binance managed to secure numerous partnerships and launch a wide variety of services during 2019, something that helped BNB enormously.
Every time the market was in a downtrend, BNB managed to overcome it thanks to the positive news from Binance, however, after a lack of positive news, BNB seems to have fallen like the rest of cryptocurrencies and even though it’s still trading around 3 times higher than at the beginning of 2019, some investors are wondering if it was just hype.
Technically speaking, BNB is still in a huge bull run and uptrend when looking at the monthly chart. The low of this uptrend is all the way down at $4.12 and the bears would need to break below this level to create a downtrend. It’s clear that the long term is in big favor of the bulls as the bearish trading volume has been significantly lower.