Binance, a leading cryptoasset exchange, announced yesterday that it would issue a debit card. This is big news, and we have seen a slight spike in price as a result (presumably) for Binance’s own cryptoasset Binance Coin (BNB). But this is not enough to translate into any important victories on the chart: more is needed to stop the threat of a MTF downtrend. And there are some solid signs on the MTF charts.
We can start on a daily BNB/Bitcoin chart, and we see the tiny spike that came yesterday has engaged a significant inflection level on the regional chart. BNB has been downtrending here since Feb, and we need to see this level taken in order to start calling an end to that downtrend.
There may be a chance for that, as the indicators look good here. We see a bull divergence progression on the RSI, as well as a histogram cross into bullish territory.
Coming to the weekly, we also see a somewhat bullish picture developing after a season of downward, and then sideways price action since May 2019. BNB here is wicking into a support zone and holding well so far.
The RSI here is also showing a series of bull divergences and higher lows, which is promising. The histogram here also looks decent, with a bullish expansion about to start, and a possible maintenance above the centerline.
Finally, on a 3-day BNB/Dollar chart, we unfortunately do not see an equally bullish picture. BNB was rekt along with everything else, in the recent Corona-inspired market dump that spared nothing.
BNB’s chart here looks mostly like Bitcoin. Given that BNB/Bitcoin looks healthy, we might expect BNB/Dollar to do better if Bitcoin heads south again. We don’t see any obvious bullish signs on the RSI; and although the histogram is contracting bullish, it does not look to be accelerating and is a long way from the centerline.
In the long term, BNB/Bitcoin’s chart looks like it’s stabilizing. This may translate to good performance in the near future, and this is the best we can say about Binance Coin at the moment.
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