Binance appears to have completed a pullback on its long-term time frame and is ready to resume the climb to the swing high. Stochastic is indicating oversold conditions on the daily time frame and this oscillator looks ready to climb, reflecting a potential return in bullish momentum.
Zooming in to the 1-hour time frame, however, suggests that the downtrend might still resume. The 100 SMA is below the longer-term 200 SMA on this chart so the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse.
It’s worth noting, though, that price broke past the 100 SMA dynamic inflection point to suggest that buyers are trying to push Binance price higher against bitcoin. However, it has yet to test the 200 SMA dynamic resistance level. If this holds as a ceiling, Binance could dip back to the nearby lows at 0.0004500.
Looking much closer into the 15-minute chart shows a bit of an ascending channel forming. Price is just bouncing off the resistance and could be due for a pullback to support. This floor might hold as the 100 SMA is above the longer-term 200 SMA on this time frame and the longer-term moving average lines up with the bottom of the channel.
Stochastic is heading south to reflect the presence of bearish pressure but is also dipping into oversold levels to indicate exhaustion among sellers. If buyers take over, another bounce to the top of the channel closer to 0.0005200 might take place.
Stronger bullish pressure could lead to a break past the resistance and a steeper rally. On the other hand, a pickup in bitcoin demand could mean more weakness for Binance. Note that bitcoin has been surging to new record highs once more, setting its sights on the psychological $5000 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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