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- BNB / USDT moving within an ascending channel formation, subject to a breakout to the downside.
- There is much anticipation ahead of Binance's DEX launch, expected in early 2019.
Binance Coin (BNB) has been a decent recovery since being slammed in November and into the early part of December. The price had initially dropped to whopping 58%, before being able to stabilize most recently on 7th December. Since, BNB has jumped as much as 20% to the upside, moving within an ascending channel formation. However, despite the gains of late, a similar bounce was initially seen on 25th November to 5th December, before another dump. BNB / USDT had tanked to 35% chunky, after this brief period of stabilization.
Strong Fundamental News Flow
The world's largest exchange will be launching their own decentralized exchange (DEX), expected for early 2019. There is much excitement and buzz across the social media space. BNB will be moving from its ERC-20 token status, which is currently on the Ethereum blockchain. As a result, it will be transferred to its own proprietary blockchain, which is set to be called the Binance Chain.
In terms of a decentralized exchange, this technology can facilitate a new type of pair matching. This can be done without the need for an intermediary institution, managing the ledger or even controlling the user's funds.
Elsewhere, Binance recently announced that they will be adding to new institutional investors. They will have the facility to create sub-accounts on the Binance exchange. Finally, the company has also exercised further use of their token, BNB, as these can be used via Tripio to secure bookings.
Technical Review – BNB
BNB / USDT 4-hour chart
An increase in channel formation. This comes after the decent bounce from the low on 7th December, having dropped to a low of $ 4.1200. At the time BNB / USDT was very much oversold, dropping to 26 via the RSI on the 4-hour time frame. Technically, they are subject to a potential breakout to the downside.
Support Levels
BNB / USDT weekly chart
Near-term support should be noted at $ 4.8000, which is the lower part of the observed ascending channel. Further south, eyes would be on the 7th December low at $ 4.1200. BNB / USDT is already trading on the lower levels seen since December 2017. Lastly, it should be over $ 16.25 could be on the cards. This is a weekly support seen for 17th December 2017 week commencing.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the currency, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.
