Disclaimer: The findings of the following analysis is the sole opinion of the writer and should not be taken as investment advice
There has been a major drop in the overall value of the cryptocurrency market over the past few days. Binance coin also noted a strong descending value, however, it has also begun to recover in the short-term.
The current price of the digital asset has been trading at $40.27, which was a great move up from the low of $36.71.
Binance coin one-hour chart
Source: BNBUSD, TradingView
The above chart of Binance Coin has been noting the price recovering within an ascending channel. However, the price has hit resistance at $40.77 and has been remaining low. Although the overall trend in the market has been bullish, there could be another dip in the value for BNB.
This could provide a shorting opportunity for traders after the price re-tests the resistance.
Reasoning
The low price level of BNB pushed it into the overbought zone, but the recovery had pushed it into the equilibrium zone. The current recovery has pushed it closer to being overbought, but the resistance has kept it in the overbought zone. Meanwhile, the 50 moving average is under the price bars, indicating the bullishness in the market.
However, the Awesome Oscillator was noting reduced momentum in the market. As the market recovered from the fall and hit consolidation, the AO was noting a loss of momentum. This could indicate that selling pressure is evolving in the market.
Crucial levels
Entry: $39.92
Stop-Loss: $40.71
Take-Profit: $38.37
Risk-to-Reward: 1.94
Conclusion
The Binance Coin market has been moving sideways and there could be a price dip as it breaks out of the ascending channel. However, the price may re-test the resistance at $40.77, before the sell-pressure evolves and traders can take profit at $38.37.
