BNB Holding at Critical Support Level, So Far — Price Analysis

  • Short term trend: Possible bounce setup
  • Long term trend: Possible reversal from downtrending retracement

The broad strokes of the venerable exchange token, Binance Coin (BNB), have been an extended period of retracement after achieving new all time highs during the summer of 2019. At the moment, BNB is retesting a critical support level, and if it holds here it could present a buying opportunity at a stable level.

We start on the 3-day chart to get a look at this level, which is derived from support all the way back in March, starting at $15. If this support holds, it will mean two things: First, it will be a double bottom to the retracement, which is often an opportunity for reversal (in this case, from a downtrend); second, we’ll see a bullish divergence on the RSI.

Support reachedBNB chart by TradingView

It might be a big “if” for price to hold in this region, however. The histogram is about to cross bearish on this high timeframe chart, which might drag BNB lower. For another thing, Bitcoin has returned to a downtrend for now, which tends to drag most other cryptos’ USD prices down with it.

Moving to a daily chart, we see that BNB has lately gone into oversold territory, and run away from the EMAs. Even if the exchange token doesn’t end up holding within the $15-13.60 support range, we are likely to at least see a bounce off of this level.

Oversold on the daily, sitting in supportBNB chart by TradingView

We see the histogram contracting back up from a low – no doubt helped along by the Bitcoin capitulation – and we are likely to see momentum swing up enough at least to test the 8 EMA, if not the 21 and 55 EMAs as well.

Finally, staying away of the Bitcoin side of things, we look at a daily BNB/BTC chart and note first of all the presence of a parallel, uptrending channel. It seems likely that this channel will be respected with a likely double bottom put in, and a histogram that looks ready to start contracting up. The base of this channel was built on notable support from the 2018 chart.

Potential trade setupBNB chart by TradingView

If it does hold here, a hidden bullish divergence on the RSI could likely propel price back to the top of the channel – and neatly into a resistance zone with several instances of reaction from price.

In short, on both charts there is a possibility for a trade setup. Beyond that, Binance has been looking for a bottom from 2019 highs, and there are some reasons to think it has found one. With Bitcoin dominance looking set to continue falling, maybe it’s time.

The views and opinions expressed here do not reflect those of and do not constitute financial advice. Always do your own research.

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Binance Acquires Crypto Debit Card Issuer for an Undisclosed Sum

Leading cryptocurrency exchange Binance has acquired cryptocurrency debit card issuer Swipe for an undisclosed sum, in a deal that gets the platform one step closer to issuing its Binance Card.

Finance Magnates reports the firms shared revealed the companies will “work together to further mainstream adoption of cryptocurrencies,” by further bringing fiat and digital assets together. The deal will allow for cryptos to be used as a payment method in the traditional financial system.

Binance unveiled its plan to launch a Visa crypto debit card earlier this year, but was having difficulties implementing it. The acquisition of crypto start Swipe should help fix these difficulties and support the exchange in its “mission of making crypto more accessible to the masses.”

Per Binance CEO Changpeng Zhao, off-ramps are a key component to be considered in its mission. He added:

By giving users the ability to convert and spend crypto directly, and have merchants still seamlessly accept fiat, this will make the crypto experience much better for everyone.

Binance and Swipe listed each other’s native tokens as part of the deal. Binance now has trading pairs for Swipe’s SXP token, while the Binance Coin (BNB) was added to the cryptocurrencies, stablecoins, and fiat currencies available as a payment method on Swipe.

Swipe, it’s worth noting, converts cryptoassets into fiat currencies at the point of purchase. Users pay in a cryptoassets of their choice, which is then converted into fiat currency the merchant receives, so the latter does not have to manage cryptoassets, or accept payments in them directly.

Swipe’s cards are issued by Contis Financial Services, a visa Principal Member regulated by the UK’s Financial Conduct Authority. They are available in 31 countries within the European Economic Area, and support transactions in euros, pounds, U.S. dollars, Korean won, and Philippine pesos.

The firm’s CEO Joselito Lizarondo revealed partnering will Binance will “place Swipe in the position to make cryptocurrencies more accessible for millions of users worldwide.” Binance Card users will be able to get up to 4% cashback in bitcoin on their purchases, which will be available in over 50 million locations in the world.

Featured image via Pixabay.