31.5 C
Monday, May 27, 2024
HomeTradingBinance (BNB/BTC) Technical Analysis for 05/22/2018 – Upside Breakout Targets

Binance (BNB/BTC) Technical Analysis for 05/22/2018 – Upside Breakout Targets


Related stories

Binance recently broke to the upside from a descending triangle formation to signal that further gains are in the cards. Price retreated upon hitting the 0.002 level but it seems to be completing its correction.

If so, Binance could make its way back up to the Fibonacci extension levels as upside targets. The 38.2% extension is located at 0.00182 then the 50% extension is near 0.0019. The 61.8% extension is near the swing high at 0.00195 and the 78.6% level is past the 0.002 handle at 0.00204. The full extension is at 0.002159.

The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside, which means that the rally is more likely to resume than to reverse. The 100 SMA is also near the pullback and could act as dynamic support in another dip.

RSI seems to be heading lower but is changing its mind halfway to turn back up again, drawing buyers back in. Stochastic is also pointing up to reflect buying pressure but is nearing overbought conditions to reflect exhaustion. In that case, Binance might still make a deeper correction to the broken triangle resistance near the 200 SMA dynamic inflection point.

Bitcoin has recovered in recent sessions thanks to a return in risk-taking. However, near-term technical resistance levels continue to hold and a continuation of the drop is still a possibility.

Binance could be poised to take advantage of this as the exchange recently doubled its referral bonus. This altcoin is used by participants to cut their fees in half when trading in and out of altcoins on the platform. This also conducts regular coin burns and increases the platform stability.

In an official statement, the Binance Team announced:

Binance will double referral commission rewards to 40% for all accounts that hold 500 BNB or more, starting from 2018/05/19 0:00 AM (UTC). Each user’s commission rate will then be adjusted at 0:00 AM (UTC) each day based on their BNB holdings. The commission rate for all other users will remain at 20%.

Note: The daily snapshot of BNB holdings will not include any BNB locked in-order or pending for withdrawal/deposit.


Latest stories