Advertisment

Binance has been on the decline ever since rumors hit that the company is actively selling units to limit price gains. It can be seen that price has been dropping since last week but is also consolidating inside a small symmetrical triangle pattern after the CEO shared an explanation on Reddit.

The short-term moving average is below the longer-term moving average on the chart so the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. A candle closing below the triangle support can be enough to confirm that the downtrend is gaining traction or that a dip to the previous lows is in order. On the other hand, an upside break from the triangle resistance or the longer-term moving average dynamic resistance could spur a reversal.

Volume has ticked lower since the past week as traders await more updates from the company. Stochastic has been moving lower but is dipping into oversold territory to indicate exhaustion among bears, possibly allowing buyers to regain the upper hand from here.

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.

There have been speculations that the team has sold off some of the BNB to keep price gains suppressed, but they have been issued smart contracts and have no reason to manipulate prices.

It’s worth mentioning, however, that the Binance team actively buys back some coins off the market every quarter and that 20% of company profits will be used to buy back BNB at market value.



Get the latest Bitcoin News on The Bitcoin News
Our Social Networks:
Facebook Instagram Pinterest Reddit Telegram Twitter Youtube