While the Binance platform is facing many difficulties, the price of BNB has not remained indifferent. Let’s see the future prospects for the cryptocurrency of the main exchange.
BNB status
Since June, the price of BNB has stabilized by forming a range roughly between $230 and $250. It was only from last week that the BNB came out of this zone, registering a decline of more than 10%. BNB is now trading just above $200. It sits below the 50 and 200 daily moving averages, both trending and crossing on the downside. From a chartist point of view, we can see a potentially activated double top. This figure promises a move south. Oscillators point to bearish momentum, although a slight bullish divergence hints at a hint of hope.
The current technical analysis was carried out in collaboration with Elie FT, passionate investor and trader in the cryptocurrency market. Today a trainer at Family Trading, a community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual aid around the financial markets in a professional and warm atmosphere.
Panic on Derivatives?
According to Coinalyse, the open interest of the BNB was revised upwards. As the price of the cryptocurrency has trended lower, this may suggest an increase in short positions in the latter. Anticipation of a bearish movement or hedging strategy, whatever the situation, these positions can increase the selling pressure on the BNB. The pessimism of the cryptocurrency can be illustrated by its negative funding rate. Indeed, the latter clearly shows the selling pressure on the “BNB” contracts, the latter having a lower value than the underlying asset. However, this may paradoxically represent a buying opportunity. Indeed, who would refuse to be remunerated for holding a long position in an asset potentially at an attractive price? Despite these words, the fundamental aspect around the BNB does not make it possible to be so confident.
BNB Price Assumptions
. In the event that the price of BNB returns above the resistance of $220, one could anticipate a continuation up to $270. Watch out for the $230-250 zone though. The next resistance to consider at this point will be the psychological $300 threshold.
. If BNB fails to re-enter and hold the $220 level, one could consider testing the $183 support. Unfortunately, if this level does not hold, the price of BNB could attack more or less quickly towards the zone of $150-140.
Conclusion
BNB is facing a lot of negative factors that have legitimately caused its price to drop. The latter is gradually approaching its lowest, from its ATH. We must hope for a renewed confidence and a real return from buyers, so as not to envisage the worst. It will be important to carefully observe the reaction of the price on the different identifiable levels to confirm or not the different hypotheses made. Beware of potential “fake outs” and “market squeezes” in each situation. In addition, it should be remembered that these scenarios are based solely on technical analysis. The price of cryptocurrencies can move more or less quickly, depending on other more fundamental factors
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
