Binance Coin (BNB): Trends and Highlights for May 22, 2019
- Binance Coin reached a low on Jan 30.
- It is currently trading inside an ascending, broadening wedge.
- An all-time high was reached on May 21.
- Multiple bullish crosses have occurred.
- Slight bearish divergence is observed in the RSI.
- We are potentially in the fifth wave of the uptrend.
Look At That Ascending Wedge…
BNB With the MAs
Elliot Wave TheoryIt appears that BNB may in the fifth wave of a potential Elliott wave formation.The full five wave formation is shown in the graph below: The first wave occurred between Jan 30 and Feb 11 when the price jumped from a low of $6.02 to a high of $10.08. Subsequently, the price dropped to the support line and generated a second wave A gradual increase that lasted over a month constituted the third wave. Price touched the resistance line and dropped to the support line generating the fourth wave. Currently, the price has rebounded and touched the resistance line creating what we believe to be the fifth wave. Furthermore, it seems as if we are very close to the full 4.618 fib extension of this wave. Therefore, according to Fibonacci ratios and Elliott wave theory, we should be approaching the top. While further increases can occur, we expect them to be within the confines of the wedge. While a breakout may still occur, it will likely be false. Price is bound to return to the wedge soon after breaking out. It appears that BNB may reach the support line after commencing a reversal. In order to see if there is a precedent for this movement, a look at the weekly time-frame is required.
Candlestick AnalysisThe price is analyzed at weekly intervals below: Last week’s candle was bullish with a long upper wick. It is in the process of being succeeded by a doji candle, a small body with long upper and lower wicks. This formation shares similarities with the top in Jan 2018. Similarly, a bullish candle with a long upper wick was succeeded by a doji candle before a reversal ensued.
SummaryThe price of Binance Coin experienced bullish gains that pushed the price to an all-time high of $33.58 on May 21st. After several bullish crosses, bearish divergence was observed in the RSI. According to Elliott Wave Theory, we believe that we are in the final wave of the uptrend and a reversal is in store. Where do you think will happen to the price of Binance Coin? Let us know your thoughts in the comments below. Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.