Does Binance Coin have the potential to register sharper price movements?
Binance made headlines after Japan’s financial regulator warned that the cryptocurrency exchange was not registered to perform operations in Japan. More recently, the exchange halted operations in Ontario, Canada and speculations were being made with respect to regulatory compliance. However, its native cryptocurrency, Binance Coin seemed to have overcome negative market sentiment. The digital asset posted gains on the back of a broader market recovery and traded at $261.2, up by 1.2% over the last 24 hours.
Binance Coin 4-hour chart
Although BNB started its recovery on a positive note, gains diminished after prices failed to rise above $287-resistance – an area that clashed with 20-SMA (yellow). Interestingly, the aforementioned resistance also saw a confluence with the 1-hour 50-SMA. Further down the charts rested Visible Range’s point of control and a defensive line of $255. Since BNB moved within a strong resistance and support mark, it was likely that prices would oscillate between $287 and $250 over the coming sessions.
The Relative Strength Index was denied a break above 50 and held a more neutral position at press time. This indicated a degree of equilibrium between buyers and sellers. MACD also highlighted balance as the fast-moving line was superimposed on the Signal line. However, an ADX reading of 33 suggested that BNB had the potential to move sharply based on broader market cues. A close below $255 could see prices head south and back within its demand zone of $211-231. Conversely, a bullish outcome would see BNB push north towards its 100-SMA (blue) and around $320, but gains would be limited in an overall bearish market.
Since BNB traded between a sturdy resistance and support mark, prices were expected to move sideways in the shorter term. However, BNB did have the potential to register sharper movements in accordance with broader market cues and traders must advise caution moving forward.