Nov 08, 2022
VOT Research Desk
With a 3% decline over the course of a day, Binance Coin’s price hasn’t reacted all that differently from the rest of the cryptocurrency market.
Following Binance’s decision to sell its FTT holdings, which led to a market-wide collapse in the cryptoverse, starting with FTT, the exchange coin is responding to broader market cues.
The Binance Coin price displayed exceptional performance throughout the second half of October, rising from lows of $269 to $354 on November 4. But ever since, red candles have begun appearing on the exchange symbol.
BNB came close to recording a drop of 7.07% at one time during intraday trading hours before bouncing back to record a fall of 2.53%.The price of Binance Coin was observed probing the top of the resistance block, which ranged from $335 to $357, just before the commencement of the red candles.
The candles could not shut above it, but the wicks were able to penetrate it. Twenty-four hours after the botched breach, the downturn started.
The possibility of more weakening is indicated by the Parabolic Stop and Reverse system (SAR) indication.
An asset’s price expectation direction is shown by a parabolic SAR. It looks like a succession of blue dots above and below the price; when below, it indicates a trend bias toward uptrends; when above, it indicates a trend bias toward downtrends.
Its appearance above Binance Coin’s candlesticks suggests that the crypto currency may decline even further. The 50% Fibonacci line at $316, which represents the Fib retracement of the collapse from $450 to $182, may be tested again by the price of Binance Coin.
Therefore, BNB’s next support line and potential rebound point might be $316. However, if the bearishness grows stronger, BNB may fall below $299, which is the asset’s crucial support.
The whole market, though, may rebound if the current FTT FUD issue disappears and the winds of shift.
In such a scenario, the price of Binance Coin may also avoid dropping to $299. The green bars on the histogram are still highlighted by the Moving Average Convergence Divergence (MACD).
This indicator indicates a likely trend reversal and measures the strength of the bullish or bearish momentum.
