Binance has slid lower but appears to be finding support at the bottom of its ascending channel visible on the daily chart. Assuming this floor keeps losses in check and applying the Fibonacci extension tool shows the potential upside targets.
The 38.2% to 50% extension levels are around the mid-channel area of interest at 0.0025 while the 78.6% extension is near the top of the channel at 0.0029. Stronger bullish momentum could take Binance up to the full extension at 0.0031.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. The 100 SMA lines up with the channel bottom as well, adding to its strength as support. A break lower could still find some buyers at the 200 SMA dynamic support.
RSI is heading south but already dipping into oversold territory to reflect weaker bearish pressure. A return in bullish momentum on a move higher could lead to a bounce and draw more buyers in. Stochastic has also reached the oversold region to indicate that sellers are tired and ready to let buyers take over.
Bitcoin was off to a good start for the quarter but seems to be running out of steam, offering potential for Binance to regain the upper hand. After all, Binance price action seems less dependent on market dynamics and sentiment compared to bitcoin.
Besides, bitcoin has recently been heavily criticized by well-known American economists who cast doubts on its ability to function as a store of value. They also pointed to government regulation as a source of downside pressure on price and adoption.
Binance CEOChangpeng Zhao also had a response to Buterin’s comments on how exchange-based tokens would “burn in hell,” citing on Twitter “Let’s have a bigger heart, and appreciate the fact that we are part of an eco-system.”