Binance appears to be resuming its slide after a previous upside break as cryptocurrencies have weakened in the past few days. On the 1-hour time frame, it can be seen that Binance has moved below the moving averages to reflect a pickup in selling pressure.
The short-term moving average is also below the longer-term one to indicate that the path of least resistance is to the downside. At the same time, stochastic is on the move down to confirm that sellers are in control.
What’s interesting, however, is that bitcoin has also tumbled across the board. Then again, this particular cryptocurrency appears to be preferred by traders over Binance.
On the 4-hour time frame, signs of increased selling pressure are also materializing. The moving averages just completed a downward crossover to draw more sellers in the mix.
Volume spiked on the dip to 0.00075 as bulls may be waiting to enter at that level. Stochastic is already indicating oversold conditions on this time frame, so a pickup could allow buyers to return and bring price back up to the highs at 0.00175.
Besides, the daily chart shows that Binance price spiked back up after testing an ascending trend line that’s been holding since last year. Stochastic is also indicating oversold conditions on this time frame and might be due to turn higher soon.
A bit of bullish divergence can be seen as price made higher lows while stochastic looks poised to make lower lows compared to the start of the year. Turning higher could bring more bullish momentum and a candle close above the middle moving average could be a positive signal.
Volume remains elevated as the financial headlines are filled to the brim with reports on the crash among several cryptocurrencies. For buyers, however, this could be excellent opportunities to catch the dips.