It’s time to analyze the coin, which showed more than 600% growth over the past half year and was able to update the historic high. This is about BNB. Of course, its uniqueness lies in the fact that it can only be traded on the Binance Exchange and the owners of this coin have discounts on commissions while trading on the Binance Exchange. However, we would like to continue the technical analysis of this coin.
If we analyze the price movement in a weekly timeframe, then we can highlight a few facts:
- After the first wave of the price movement, was started the classical correction, which ended in December 2018 and in which wave C = 0.618 * A.
- There is a trend line that, since March 2018, did not allow buyers to continue the promising growth of this coin, and now customers have tested this line again.
- The volumes of trading have grown significantly on the growth of the coin, and this could mean a good global growth prospect with the first global stop at a price of $38-42:
If we analyze the wave of growth from December 2018, then you can see that the price moves in a certain channel, from time to time having the ability to jump out:
Now the price is near the local upper trend line of the growth channel and around the global trend line, which was conducted since March 2018, so there is a high probability of a correction in the limits of the channel to $25.
The high likelihood of correction is confirmed by the fact that anomalous volumes were noticed on the hourly timeframe when the candles look not quite confident and promising for the continuation of growth:
Pay attention to a similar situation on 15 May, when at a similar volume, after which the price stopped in consolidation, the initiative was intercepted by sellers.
If we assume that sellers will be able to break through the current growth channel down, then we will consider this as a correction with a maximum target of $15, after which a more powerful growth, than going on now, should start.
Summing up our analysis, we want to highlight two critical points that will help you choose the right scenario. The first is the price zone of $38-42. The second critical point is $25. It is interesting to observe how a coin like this will behave in terms of technical analysis. We will summarize it with you every week. Have a profitable trade and peace of mind during making decisions!
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About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market. Image Courtesy: Bitcoin News
The post BitcoinNews.com BNB Market Analysis 22nd May 2019 appeared first on BitcoinNews.com.