The Binance Coin price has rolled over in the last few sessions and remains vulnerable to a return to trend line support at $320. Although Binance Coin (BNB) has climbed 30% from the September low, the bullish momentum is waning, and the recovery is in question.
In September, China’s enhanced ban on cryptocurrencies took a heavy toll on the Binance Exchange’s native BNB token. After the Peoples Bank of China (PBOC) outlawed forbid offshore exchanges from offering services in the nation, Binance immediately withdrew support for mainland Chinese customers. As a result, BNB ended the month with a 36% loss. However, cryptocurrencies are staging a strong comeback this month. This morning, Bitcoin (BTC) is trading at a five-month high of $56,500, lifting the combined crypto market cap to over $2.3 trillion. Nonetheless, Binance Coin has decoupled from BTC and feels heavy at the current level.
The daily chart shows that Binance Coin has run into overhead resistance scale-up from $450-475. Furthermore, BNB has retreated below the 50-day moving average at $426, which brings the 100-day at $383.60 into view. If Binance Coin closes below the 100 DMA, an extension to long term trend support at $320 should follow.
For BNB to reverse the negative momentum, it needs a close above the 50 DMA. However, until the price exceeds $460, it remains vulnerable on the downside. However, if bulls can muster some positive price momentum and punch above $460, the September $540 high becomes achievable. Therefore, presently I maintain a bearish stance with a $320 price target, which becomes invalid if Binance Coin closes above $460.
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