Binance formed a double top pattern on its 1-hour time frame, signaling that it’s done with the climb. Price already broke below the neckline at 0.00240 and has since pulled up for a retest.

If resistance at this former support level holds, price could fall to the Fibonacci extension levels next. The 38.2% Fib extension is close to the 0.00230 level while the 50% extension is closer to the swing low at 0.00220. Stronger selling pressure could take it down to the 61.8% extension at 0.00219 or the 78.6% extension at 0.00213. The full extension is located at 0.00204.

The 100 SMA is crossing below the longer-term 200 SMA to signal that the path of least resistance is now to the downside. This means that there’s a good chance for the selloff to gain traction. These moving averages could also hold as dynamic resistance on a higher pullback as well.

RSI already seems to be heading south without even hitting overbought levels, hinting that sellers are eager to return. Stochastic is making its way south from the overbought region to show a pickup in selling pressure.

Binance is now trailing its peers in losing ground as exchanges no longer seem immune to industry threats. Earlier on, much of the concerns have been negative for other types of altcoins but the crackdown by Japanese regulators is also starting to spook Binance bulls.

Last week, Japan’s financial regulators sent a list of business improvement requirements to cryptocurrency exchanges in order to increase their oversight on potential money laundering and terrorist financing activity. This prompted several platforms to temporarily suspend trading activity in order to update their services to comply with the requirements.

Looking ahead, headlines pertaining to stricter regulation could also drag Binance lower as exchanges like these would mostly be affected also. Persistent risk aversion in global financial markets owing to trade tensions also dampen demand for digital assets.

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