Binance Coin was not spared in the Sunday crypto selloff, as it lost more than 10% on the day. An unconfirmed tweet about a wide-sweeping investigation by the Treasury Department on crypto money-laundering set off this round of selloffs, which occurred just two days after more than a million Binance Coin tokens were burned.
Binance Coin has seen significant growth in 2021 as the native token of the Binance exchange has received a lot of fillip from the new products that the exchange has continued to churn out. It has only recently listed the Coinbase stock token, allowing its users to trade Coinbase on the exchange as a CFD.
The daily chart of the pairing between Binance Coin and the US Dollar shows that the price decline of the day violated the lower edge of the descending channel, but the bounce on the daily candle retains the integrity of the channel. A bounce off the channel’s lower boundary targets the upper edge of the channel but has to take out the resistance at the 100% Fibonacci extension from the 26 January swing low to the 19 February swing high, at 480.68. Above this level, further resistance is seen at the 12 April low and 18 April high at 520.77. Additional upside targets lie at 560.70, 602.47, and 637.70.
On the other hand, a breakdown of the channel allows the price to target the 414.18 support, with 400.01 and 379.84 (5 April 2021) lining up as additional downside targets.
Follow Eno on Twitter.
