Binance Coin (BNB) Technical Analysis #002 – Binance Coin falls below $10; Short term support located at $8.38

175
AdvertisementLedger Nano X - The secure hardware wallet    

Binance Coin has experienced a small 3.85% drop over the past 24 hours of trading. The cryptocurrency is currently exchanging hands around $9.50 after experiencing a small 4.97% price hike over the past 7 trading days.
The ETH based cryptocurrency allows users to receive discount for fees incurred on the Binance platform. Binance is currently the biggest cryptocurrency exchange in the world by volume.
The Binance team have also committed to a quarterly buy back program which will see them use 20% of all their profits to buy tokens each quarter to burn. They will continue to do this until 50% of the supply has been burned.
The small use case of BNB is limited but it has value, this is especially reflected in the fact that 90% of Binance employees have elected to be paid in BNB tokens, presumably so they can take advantage of the discount received in fees if they go on to buy Bitcoin, Ethereum or their favourite altcoin.
The cryptocurrency is currently ranked in 16th position in terms of overall market cap across the entire industry. It has a total market cap value of $908 million after suffering a muted 90 day decline of only 25%.
Since our last analysis, price action has broken below all of our expected support level. Let us analyse price action and see what has gone on.

Price Analysis

BNB/USD – SHORT TERM – DAILY CHART
https://www.tradingview.com/x/o0XKzaQ5/

Analysing the market from the perspective above, we can see that th market had undergone a bullish run as price action started at a low of $7.06 on the 9th of March and continued to a high of $17.47 on the 6th of June. This was a 146% price increase from low to high.
Since placing the high, price action has dropped drastically. We had expected to find support at the long term .618 Fibonacci Retracement level (drawn in black) priced at $10.57. However over the past 2 weeks of trading, price action has dipped well below this level.
We can see that the market was not able to withstand the August bloodbath amongst the entire cryptocurrency market. Price action has dropped below the $10 handle to find support at the short term .786 Fibonacci Retracement (drawn in blue) priced at $9.40. We can see that the market has found solid support here over the past week of trading as it currently trades here, once again, at support.
If the bearish sentiment continues and pushes price action below the $9.40 support, we expect initial support to be located at the .886 Fibonacci Retracement priced at $8.38. Further support below this can be located at the psychological round number handle of $8 followed by the March lows around $7.
Alternatively, if the support can hold and push price action higher, we expect initial resistance to be located the short term .618 Fibonacci Retracement level priced at $11.13. Further resistance above this can be found at $12.34 followed by the 100 day moving average which is currently hovering around the $13 handle.
The technical indicators are currently still favouring the bears at this moment in time as the RSI fails to break above the 50 handle. The recent downturn in the RSI could be worrying as it may signal that lower lows are about to come. If the RSI can break above the 50 handle this would indicate that the bulls are starting to gain some solid momentum within the market.
https://www.tradingview.com/x/gscvKaRo/


Get Daily Crypto News On Facebook | Twitter | Telegram | Instagram


DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.