Worlds largest cryptocurrency exchange by volume Binance always had plans to decentralize the exchange. Today we can take a sneak peek into the “Binance Chain” as they have released a demo version of the decentralized platform, as tweeted by the companies CEO Changpeng Zhao.
The official launch was not yet announced so it is still unclear when the new decentralized version of the exchange will be live.
As BNB is the token behind Binance and will be the new Binance Chain’s native token the presentation was given using it as an example.
This will definitely impact the price of BNB positively in the long run, but in the following paragraph, I will provide a technical analysis for the more short-term trends as this news in itself could impact the price positively.
From yesterday’s open at 13.129$ the price of Binance coin has depreciated in value by 5% as its currently trading around 12,5$.
Looking at the BNB/USD 4-hour chart we can see that the price broke out from the symmetrical triangle in a steep decline but found support yesterday on the 11.878$ level. The price also retested the larger triangle’s resistance line from which it broke out on 26.07.2018. Having found those two supports the price is starting to recover quickly.
Zooming out onto the daily chart we can see that the 11,878$ level is a significant support level that was well respected in the past and also now served as strong support.
As the price found support on that level and retested the larger triangles resistance line which now serves as support I believe that the price is heading up from here.
Zooming into the hourly chart we can see that the price action has formed a U shape formation which usually indicated a bottom. If the price goes up from here the next level I see that is going to serve as resistance is at 13.86$.
Technical indicators up to an hourly time frame are signaling a buy, while 4 hour and daily chart technicals are signaling a sell.
Looking at the BNB against BTC on the daily chart we can see that the price is just below the baseline support which was broken on 17.07.2018. Current uptrend is a recovery and I don’t expect it to last for much longer. However, there is a good chance that the price has a little more on the upside as to retest the baseline support.
Zooming into the hourly chart we can see that the price is currently in a corrective descending channel above the 0.382 Fibonacci retracement level which serves as a support.
This range can either be a WXY correction and the final impulse has already started which is my main count, or it can develop another XZ waves before a breakout. If the current wave breaks out that my primary count would be valid, and if it retraces back to the channels support where the 0.382 Fibonacci level than that was the final Z wave.
In both cases, I am expecting the price to go up from here to at least interact with the baseline support levels or potentially exceeding it a bit. The 0.5 Fibonacci level will serve as strong resistance so we will see what happens there.
1 hour, 4 hours and daily chart technical indicators are signaling a buy.
Both USD and BTC against BNB are indicating that more upside is to be expected however it is unclear whether or not that upward movement is going to go. Having in mind that we are in a bear market I don’t believe that the price can go much higher from here but BNB coin was the most resilient coin among others in this bear market which is why a surge in price run by the news wouldn’t surprise me.