Binance Coin recently busted through its long-term descending trend line to signal that a reversal from the selloff is in the works. Price is also trading inside a short-term ascending channel as bulls gain more traction.
The price has since completed its pullback to the broken trend line resistance and is on its way up to test the next target at the 200 SMA dynamic inflection point. However, the 100 SMA is still below the longer-term 200 SMA to signal that the path of least resistance is to the downside. This suggests that there’s still a chance for resistance to hold and the selloff to resume.
Then again, the gap between the moving averages is narrowing to signal weakening selling pressure. Also, the price is moving above the 100 SMA which is holding as dynamic support and could continue to keep losses at bay.
RSI is pointing up to signal the presence of bullish pressure, but the oscillator is already in the overbought zone to reflect exhaustion. Turning lower could indicate that sellers have won the upper hand and could push the price back down to the nearby support zones.
Similarly stochastic is heading higher and has some room to climb before settling in the overbought zone. This means that buyers might still have some energy left but could run out of steam soon, allowing sellers to take over. If nearby support levels hold on a dip, Binance Coin could encounter more buyers that could sustain the climb.
Binance is enjoying a lot of attention from the BTT sale earlier on as the company is also said to be planning an airdrop for its BNB holders. The exchange noted:
In the BNB session, all 23.76 billion BTT were sold to token sale participants within 13 minutes and 25 seconds.
In addition, the potential for use cases as exhibited by Binance Launchpad is also attracting investor attention.
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