Reports of China banning ICO funding has weighed on Binance price since the start of the week but another holding pattern is forming. Price formed lower highs and higher lows, creating a symmetrical triangle visible on the short-term charts.
Price has yet to break out of the pattern before confirming which direction it might head in the long-term. The short-term moving average is below the long-term moving average for now to signal that the path of least resistance is to the downside, but the gap is narrowing to indicate a potential pickup in buying momentum. Stochastic is pulling up from the oversold region on the 15-minute chart to signal that bulls are back in control.
On the 1-hour chart, it can be seen that the downtrend is pretty much intact and that Binance could hit a ceiling at the moving averages’ dynamic inflection points even if it breaks higher. Stochastic is also pulling up on this time frame, though, also suggesting that buying pressure is picking up.
Zooming out to the longer-term daily chart does show a steep drop and what appears to be three strongly bearish candles. The latest candle reflects the holding pattern and looks like a spinning top, so the succeeding one could determine whether a pop higher is due or not.
Stochastic has been moving in the oversold region for quite some time on this chart, also indicating that sellers need to take a break and let buyers take over. If not, price could break below the 0.0002000 mark.
Binance is an up and coming Chinese exchange but it has its own cryptocurrency. These tokens were created by an Ethereum smart contract some time ago and a total of 80m BNB coins is kept in reserve, all of which belong to the team. A total of 200m coins were created initially so there are 120m BNB coins waiting to be traded.
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