Binance continues on its move down, trading below the moving averages on short-term time frames and confirming a bearish continuation pattern on the daily.
The short-term moving average is still below the longer-term moving average on the 15-minute time frame so it’s likely that Binance will keep edging lower from here, with the moving averages holding as dynamic resistance. Volume has ticked a bit higher earlier in the day to reflect investor interest.
A bit of a pullback may be underway for this short-term price action, though, as stochastic is pulling higher and has some room to climb before indicating overbought conditions and turning lower.
The same can be said for the 1-hour chart as price is treading farther away from the moving averages. This reflects strengthening bearish momentum as only shallow pullbacks and downside breaks are seen lately. However, stochastic is just pulling up from the oversold region to signal a possible return in buying pressure that might lead to a correction.
Lastly the daily chart shows a move below the pennant or flag pattern that is typically indicative of trend continuation. And since Binance came off a steep drop from 0.0006 to 0.0002, this break lower confirms that sellers are ready to hop back in.
Stochastic hasn’t even made it to the overbought zone before turning lower, which means that sellers are eager to increase their positions or that bulls are still liquidating their holdings. Bitcoin is also weaker against most of its peers as the dollar is regaining ground across the board on a hawkish FOMC statement.
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.
However, the ban on ICO funding and the shutdown of bitcoin exchanges also threatens to put the existence of Binance at risk, although there is still some observable demand from other markets.