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Binance is easily one of the world’s largest cryptocurrency exchanges in the world with report volume North of $5.35 billion. The exchange has over 600 trading pairs and 196 coins. Off which, the exchange has its own token known as Binance token, which serves a utility function for the exchange and has other features as well.
The exchange token, at the time of writing, was worth $12.30 and had a market cap of $1.9 billion with 24-hour trading volume at $333 million. The token had a 1% drop in the last 24 hours and a 22% surge in the last week.
- As it stands, BNB has broken its previously formed ascending triangle with price exhibiting a bullish breakout on March 19.
- The overhead resistance at $12.64 is preventing a bullish surge and keeping the price grounded.
- A breach would cause the price to surge by 20% and a failure to breach would cause an equal amount of price variation but in the opposite direction.
Four Hour BNB Chart
Source: Trading View.As mentioned, BNB has broken out of the ascending triangle and has been moving sideways since then. The sideways pressure is due to the resistance at $12.64, which has been tested twice in the last 5 days.
A successful breach of this level would allow BNB to push higher, at least up to the next level of resistance at $15.58 or 20% surge from its current level. However, if the price fails to capture $12.64, the downward movement is confirmed. A downtrend would take the price to $9.62 (-23%) first, following this level would be $8.32 (-35%). Hence, both scenarios are heavily dependent on what happens with the resistance at $12.64. Either way, the price looks to gain/lose 20%.
The directional movement index indicator (DMI) showed a slow increase in the overall trend from bearish to bullish. This can be seen in the bounce of the yellow line from the bottom and its journey towards the dashed-line aka ADX (white), which is the neutral zone.
Further, the uptrend or the DI+ line (green) is also undergoing a bounce at the ADX line, hence this indicates a failure to extinguish the uptrend or DI+ line.
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