Binance Coin (BNB) is currently trading at around $21 following a minor drop from $23 earlier in the week.
Overall, price has been on a downtrend since July and BNB is currently below all its EMAs.
Binance Coin experienced a short pump during the middle of August, reaching a momentary high of $32, but it has been declining ever since and is currently nearly 50% down on its summer highs.
Will the coin recover soon?
Let’s take a look at the chart for BNB.
As you can see from the chart above, BNB managed to fly past the 50-day and 20-day EMAs when its price pumped in August. However, since early September, we’ve had confirmation the coin is still experiencing bearish momentum, with price falling below all its EMAs and struggling to fight back.
I personally expected BNB to start recovering sooner, given every crypto adviser on LinkedIn was saying IEOs will be the next big thing in crypto – at least for the next year or so.
However, what we’ve seen so far is another dying fad that has been taken over by “DeFi”. Maybe when serious new money comes in the IEO trend will shift, but so far it has been disappointing.
Still, Binance’s strategy of promoting its non-custodial service could also help the coin in the long term, as crypto enthusiasts care about how their funds are stored.
If BNB is able to push above the 200-day EMA before we see another death cross – as the 50-day EMA is on the verge of crossing the 200-day EMA to the downside – we could see a trend reversal.
If price moves above $33, I would expect to see Binance Coin making a swift move towards $40 as this is a key volume level. Arguably, with Bitcoin struggling to break out, the market may move sideways for a little while longer, with potentially further retracements if the price of Bitcoin falls further.
If price moves to around $24 over the next few days, we could see some consolidation around the 200-day EMA, which may kickstart a new trend to the upside. It’s still too soon to say whether that will happen though, given the thin volumes of around $220 million.
About Binance and BNB
Binance is currently the world’s second-largest cryptocurrency exchange, with around $6 billion in assets traded in an average seven-day period. Binance’s rise to the top has been swift. Since its launch in July 2017, Binance has grown at a rapid rate. Binance was one of the first exchanges to reactivate user registrations at the peak of the 2017 bull market.
Binance Coin is also the name of a cryptocoin (BNB) traded and used on the Binance exchange. Since the ICO, the value of BNB has risen with the growth of the exchange. BNB is now among the top 10 cryptocurrencies in the world by market cap.
More Binance Coin news and information
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