Binance Coin on the edge of crumbling [BNB TA]
Binance Coin has been thus far a hallmark of bullishness, climbing up the CMC ranks even in this bearish environment. From a technical perspective, its chart has looked really good up till now, but it's closing into a critical point, that would determine the coin's price action for the next few months.
Ever since its launch, Binance Coin (BNB) has been in a strong uptrend, which can fit into a channel, according to the weekly chart. The price has settled for weeks and weeks, but that just means it's getting closer to the trendline support. When this happens, we NEED to see a spike up, otherwise BNB is just going to break its historic uptrend, and try a prolonged consolidation somewhere else on the price range.
But we see already a prolonged consolidation, lasting for over 2 months!
Well yes, it is somewhat similar to Bitcoin, in the sense that we have been just chopping between the same support and resistance range ever since early August. However the pressure has been on the support. The support is composed of a previous relevant price range overlapping the 34 week EMA. This EMA held the price up for the past weeks, but something BIG just happened:
For the first time in HISTORY a weekly candle closed BELOW the 34EMA, and the following candle seems to also trade lower. What's more, again for the FIRST TIME IN HISTORY, the 34 EMA seems to be trending lower,a strong suggestion that bearish action might come, unless the price action is overturned ASAP!
So what info do we have?
1. Lackluster price action, always pressing on support.
2. Price is riding straight into the historic channel support
3. First close ever under the weekly 34EMA
4. For the first time ever, the 34EMA is trending downwards.
Conclusion:
If we had only item #1 and #2 from above, I would consider this a good longing opportunity. However, I see #3 and #4 as hints of a likely big move down to come. The ultimate target? Once the 34 EMA is broken, we're in uncharted territory, but I would look to the next EMA that I use, which is the weekly 55.
Is good to know it, I guess it isn't time to invest in Binance coin now then :), better when goes at lower levels?. It seems a solid choice as you said Binance is a big actor.
Should just wait for a big move to see how it goes. Problably the move will be on par with Bitcoin's eventual big move. Personally, I frontran the support break, which is risky and potentially silly, but I'm still developing as a trader and I want to put myself in difficult spots to experience how and why this and that is/isn't good to do.
Figured BNB would've took off. Was doing seemingly well in early summer. Especially since you get discounted trades using BNB. thank you for the tip ;)
Yea, in early summer it actually reached its ATH on its Bitcoin pairing. That growth hasn't fully crumbled yet, but neither can it go on horizontal indefinitely. Something significant must happen.
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