One cryptocurrency trader has suggested that Binance Coin (BNB) may be looking at impending price increases.
Binance Coin (BNB) is a utility token that has a deflationary design through buybacks and token-burning events. Its early success and innovative design led others to create similar tokens.
However, it still has several doubters — namely, billionaire Calvin Ayre, who has recently called it a house of cards and suggested that both BNB and the exchange behind it, Binance, will not have a future in the cryptocurrency industry. Ayre, who is a supporter of Bitcoin SV, has recently been embroiled in a back-and-forth with Changpeng Zhao (CZ), who is the founder and CEO of Binance.
The exchange recently made news by re-entering the Chinese market by introducing BTC/yuan trading.
‘Get CZ on the Phone’
Cryptocurrency trader @shakiXBT stated that Binance Coin is ready to move upward after breaking out from the triangle it has been trading in for several days.
Time to get CZ on the phone to pamp $BNB
yeah triangles are a meme
yeah this will still pump pic.twitter.com/oGomWPwKN2
— shaki (@shakiXBT) October 22, 2019
Additionally, he jokingly alluded that we should tell this to CZ, who will, in turn, pump the coin. This is a reference to the previous time in which he warned traders not to short the coin — which, in hindsight, turned out to be poor advice.
Let’s take a closer look at the price movement and discuss where the BNB price will go next.
Current BNB Price Breakout
Looking at the four-hour chart, we can see that the Binance Coin price indeed broke out from a symmetrical triangle inside which it had been trading since October 15.
However, the breakout was done with minimal volume and the price has decreased significantly below the breakout level since.
Looking at this price move from a longer-term time-frame, the BNB price seems unlikely to move higher:
- First, it has found strong resistance at the 50-day MA, which also coincides with the 0.618 fib level of the previous drop.
- Second, the presence of upper wicks near this resistance area makes a breakout unlikely.
- Finally, the bearish divergence in the RSI confirms the hypothesis that BNB is likely to decrease.
Therefore, we do not believe the breakout of BNB will lead to a pump.
Do you believe the BNB price will begin an uptrend or will it decrease towards $15? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images are courtesy of Shutterstock, TradingView.
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