Binance’s cryptocurrency (BNB) has had a not so good week as the coin went down by 5.6% in the last seven days, and today hasn’t been different either as it’s trading in red numbers at the tune of 3.46%.
BNB trades at USD 31.95 as we write this. It started around the 34,24 level and then, from 5:42 UTC on it went down to reach 32 USD which is quite a dip.
The trading volumes have been substantial both for the bulls and for the bears, but the bears have had the day so far, and every technical analysis scenario is for the bears as well.
The token has been trapped in sideways trading for several hours as we write this and it’s currently going down slowly but steadily. It’s at USD 31,95 as we write this.
24-hour technical analysis
In the daily period, we are below the 33,891 pivot point, and every moving average is for the bears as are six out of eight technical indicators. The resistance levels are at 34,0773, 34,2093, and 34,2975. These are not very far from the current spot price and, on top of that, we saw each of those broken on the weekend, so there’s no reason for BNB not to break them again during the next few days even though the current trend is slightly bearish.
Monthly technical analysis
The monthly scenario is decidedly bullish. According to it, we’re above the first and second resistance levels (26,25 and 30,4571) so the coin has already found a way to break through upwards, and it should now be gathering momentum to test the third resistance level at 35,4243. This is precisely what we saw last Saturday at 13:45 UTC and at 10:15 UTC. We would expect to see it again and, if the USD 35 barrier can be overcome, then anything could happen.
However, enthusiasms should be curbed by the knowledge of BNB being at the highest points in its history. That is good news, but if the price rises only a little more, then we’re all in uncharted territory, and even technical analysis will fail in seeing further gains on the horizon or a substantial market correction that brings the price back down.
BNB has shown it has a way of doing well when everybody else is in the dull drums. When most of the market was soaring not too long ago, BNB kept on rising even higher. Nobody remembers (or acts on) the news about the Binance hack. It’s all peachy for BNB.
So yes, the long-term trend is upwards, and the outlook is good, but entering a market when it’s at its historical highs, it’s usually the opposite of what you want. The rule for profits is to buy cheap and sell high. This is the moment at which you can only buy at the highest possible prices. Which doesn’t mean it won’t go further up, just that the risk is higher.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
