With Bitcoin falling back towards $ 37,000, much of the crypto market is seeing losses. Binance Coin is no exception, trading at $ 339.75 at time of writing, shedding 3.99% in the last 24 hours, and again postponing the possibility that a major uptrend would resume.
Despite the bad news, recent losses are still above the level reached in May, when the general market crash ran. Therefore, the bearish tide in the short term does not seem too worrying.
Binance Coin continues to hold a great leadership position in the ecosystem, being the native token of the largest cryptocurrency exchange. In case we see the bull run being resumed, it is extremely likely that this coin will follow this trend.
Today BNB is the 4th largest cryptocurrency by market capitalization and the 5th by daily volume.
Binance as an exchange moves around $ 16,150 million daily, they have a total of 258 cryptocurrencies and 1,160 markets listed. Its dominance in the exchange segment is 19.41%.
All of these great metrics positively influence the BNB token. In addition, another great positive factor behind this currency is the growing adoption curve of the Binance Smart Chain, since all the decentralized protocols that make life there, coexist with the exchange’s native token, either by paying transaction fees, for staking of liquidity, etc.
Having done a quick fundamental review of this cryptocurrency, we are now going to see how the price behaves to forecast where it is most likely to move next.
BNB technical analysis
When analyzing the daily chart of the price of Binance coin, we noticed a small downtrend in the very short term, but that is not really worrisome if we look a little to the left.
Following the big market crash in mid-May, BNB hit a low of $ 211.70. Then quickly a strong buying pressure appeared, signaling exhaustion of the bears, and the possible bottom of the fall.
Let us remember that this cryptocurrency remained in constant and volatile rise during the first months of the year. The big sale you recently witnessed still means a necessary correction from those impressive gains from previous months.
Now the price has been hitting higher and higher lows, indicating that the odds are in favor of an early effective bullish escape.
Today this token is near the area of the last highest low, which could well exert pressure for a new momentum to start.
If the resistance at $ 428.46 is broken (most likely scenario) the medium-term trend will be effectively resumed, and the ground would be clear to $ 596.71.
Losing the support at $ 333.56, would open the way to sales to a minimum of $ 305.04. Further down the next support is at $ 260.72.
BNB vs USDT daily chart analysis. Source: TradingView.
Binance coin bullish trend still intact
If we review the weekly chart we see more clearly that great dominant uptrend, which has brought Binance coin in recent months.
With the recent drop, although it undoubtedly generated a negative outlook in the short term, even that greater intention predominates.
After hitting that low of $ 211.70, BNB started a respite rally, and it’s still just that, a respite, as we still don’t see the bulls fully determined to hit new highs.
There are 2 options currently. The first is where the general bull run ended, and a correction is now in development that could last much longer. The second, and the one that remains more likely, is that the decline has bottomed out, and a new upward momentum is now developing.
Binance coin is not yet fully determined to resume its trend, which could lead to a few more slight losses before climbing again in search of highs.
But, due to the strong dominant bullish force, I do not think a very good idea to try to bet on this small incline in the very short term. Bulls could still surprise us in the blink of an eye.
The medium-term trend of Binance coin remains bullish. Source: TradingView.
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