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Binance Coin (BNB) recently broke its all-time high, reaching a price of $33.58 on May 21.
This is impressive considering that Binance was hacked for the first time at the beginning of the month. During the hack, approximately 7000 bitcoins were stolen along with API keys, two-factor codes and other information.
Despite this incident, Binance Coin (BNB)—the native cryptocurrency on the Binance Chain—appears to have more than recovered from the bad news.
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…
The price of BNB on Binance is analyzed at one-day intervals from Jan 22 to May 22 to trace the current trading pattern.
The price made a low of $6.02 on Jan 30. A gradual increase began. It reached a high of $10.08 on Feb 11.
Since then, it has been trading inside the ascending broadening wedge outlined below:
While trading inside this wedge, the price has increased by a massive 453%. BNB is currently trading near the resistance line of the wedge. If the price continues increasing, a breakout appears imminent.
BNB With the MAs
The price may, however, fall back toward the support line. In order to determine which is more likely, Binance Coin is analyzed alongside the 10-, 20-, 100- and 200-day moving averages (MA) below:
On May 18, the short-term 10- and 20-day MAs crossed generating a bullish cross. Typically, this indicates that an uptrend has begun. BNB, however, was already on an uptrend since late January. Nonetheless, almost immediately after the cross, BNB did experience a slight spike within the channel.
Similarly, on May 21, the 100-day MA crossed above the 200-day one generating a second bullish cross. Subsequently, prices pushed upward to reach the ATH.
To determine whether or not, we can expect continued gains, a look at the RSI and the MACD is required:
Bearish divergence is observed in the RSI since Apr 20; however, the same cannot be said for the MACD. On the contrary, the MACD has mirrored BNB’s price movements.
Thus, we cannot be certain that the uptrend is over. While the bearish divergence in the RSI suggests that uptrend has weakened, this does not mean the uptrend has yet ended.
Elliot Wave Theory
It 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 Analysis
The 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.
Summary
The 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.
Disclaimer
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. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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