Binance broke below a key support area and the bottom of its long-term rising channel to signal that a downtrend is underway. Price could be setting its sights on the next long-term floor from here.
However, the 100 SMA is still above the longer-term 200 SMA to signal that the path of least resistance is to the upside. This could mean that there’s still a chance for the rally to resume at this inflection point, but it could be the line in the sand for any uptrend.
A break below this could lead to a drop all the way down to the next resistance turned support zone just above 0.0005. Then again, RSI has reached the oversold region to signal exhaustion among sellers. Similarly stochastic has been indicating oversold conditions for quite some time now. The oscillators have yet to turn higher to reflect a return in bullish pressure, though.
Bitcoin has been getting the lion’s share of the gains in the cryptocurrency market lately, even as the recent updates on institutional interest and regulation would benefit the industry as a whole.
Traders are now turning their attention to the SEC decision on a bitcoin ETF as requested by SolidX. Approval could mean more gains for bitcoin versus its peers while rejection could affect most altcoins, including Binance.
While the exchange continues to list more tokens, it seems that the price gains are merely affecting those coins rather than the exchange-linked Binance. Still, a bullish catalyst could come from progress on its plans to build the first decentralized exchange along with Neufund and MSX.
In particular, this joint effort aims to create a “regulated and decentralized, global stock exchange for listing and trading tokenized securities alongside crypto-assets.” Of course this also awaits regulatory approval but continued development could usher in more demand for Binance.