Binance Coin [BNB] Faces Off Against Bear as Market Dips

As cryptocurrency prices enter a new red sector, proponents of the market remained unfazed with some urging new members to “buy the dip”. Coins such as Bitcoin [BTC], Ethereum [ETH], and Binance Coin [BNB] witnessed price slashes unseen in over 2 months.

Altcoins such as Binance Coin enjoyed a tremendous bull run last month but the current price crunch has erased all the previous accumulated gains. At press time, BNB was trading for $260.5 with a market cap of $41.1 billion. BNB prices dipped by 12.5 percent over the past 24-hours further reducing the daily trading volume to $3.08 billion. Thanks to the market-wide bear attack, BNB’s closest rival Cardano was still $5 billion behind in terms of market cap.

BNB 1 hour:

Binance Coin’s short term charts painted a bearish picture with the 4th largest cryptocurrency breaking its immediate price support. The current support stands at $259 while the immediate resistance was locked in at $365. BNB’s parent company, Binance, has urged its holders and fanbase to HODL their assets for the long run.

The Relative Strength Index had fallen towards the oversold zone, a normal movement during an price dip. This was a sign of a sell off triggered by the latest crash. Since the graph is on the threshold, there remains a chance for an upturn. According to the Chaikin Money Flow, the capital leaving the BNB market was more than the influx.

Only the MACD indicated a bullish prospect with the signal line and the MACD line diverging today. Post the divergence the graphs have moved parallel to each other, which may give a reprieve for BNB’s price.

BNB 1 day:

The long-term chart for BNB also pointed to a bearish hold on the market with prices heading to levels unseen since March. BNB’s long-term support was the same as that of the hourly chart ie. $259. The Relative Strength Index had fallen below the oversold zone as BNB’s buy-in patterns changed for the worse. The stabilization in the graph could mean that users had begun to redirect their capital into BNB.

The Chaikin Money Flow [CMF] crashed below the zero line after holding at a 60 day high. Massive amounts of BNB being sold could be one of the reasons for the sharp downturn. Unlike in the hourly charts, the MACD line for the long term was bearish. As the rest of the cryptocurrency market also heads for more bear attacks, BNB holders should continue to take notes from earlier price crashes.