We begin with a look at the long-term price outlook for both TRX and BNB: A look at current short- and long-term trading patterns alongside an analysis of technical indicators may give us an answer.
Tron (TRX) vs. Binance Coin (BNB): Price Outlook
Tron Breaking Resistance
On Dec 17, 2018, the price of TRX began a rapid upward movement. It reached a high of $0.035 on Jan 10, 2019. A gradual decrease followed. A horizontal support line is traced at $0.0217 and while a horizontal resistance line is traced at $0.315. Together, these generate the horizontal channel outlined in the graph below:
The price has touched both the resistance and the support lines of the channel four times.
On May 11, after touching the support line, the price began an increase towards the resistance line of the channel.
Wick highs on May 15 and May 16 caused the price to break out above the channel. Similar wick highs above the resistance line were experienced in April and January.
Binance Coin Back In the Middle
After reaching a low of $6.03 on Jan 10, Binance Coin began trading along an upward facing support line. A resistance line was formed in mid-February. Since then, the price of BNB/USD has been trading inside a broadening ascending wedge:
Tron’s Short-Term Ascending Channel
To better determine future price fluctuations for TRX, we have traced an ascending support line the graph below. It begins on May 14 when a low of $0.023 was reached.
The breakdown occurred with very significant volume. This indicates that the sellers have strength and further decreases are likely to occur.
No viable trading setups were identified for TRX.
Binance Coin’s Ascending Channel
As with TRX, we now analyze BNB along a shorter timeframe to predict future price fluctuations. On May 10, the price of BNB reached an hourly high of $19.8. A decrease ensued, and the price reached a low of $18.4 the next day. Since then, it has been trading inside the ascending channel outlined below:
Bearish divergence is emerging in both the MACD and RSI. This suggests that the price is more likely to continue its fall to the support line than rebound toward the resistance line.
It is possible that the price may breakdown from the support line once it is reached. If this occurs, the price is likely to continue falling toward the support line of the long-term broadening wedge traced in the first section.
If the price reaches the long-term support line, we will assess a possible long trade setup. Until then, we do not see any profitable trading setups.
Conclusion
TRX and BNB are trading in distinct long- and short-term patterns.
In the short-term, TRX recently broke down from an ascending support line. The breakdown occurred with significant volume, indicating that further decreases may be in store.
BNB, on the other hand, is trading inside a short-term ascending channel. However, it has generated long-term bearish divergence.
Therefore, we believe that both BNB and TRX will see price decreases over the next few days. We came to this conclusion because of the breakdown in the case of TRX, and the bearish divergence in BNB.
However, since a breakdown has already occurred in TRX, we believe that the succeeding decreases will be smaller.A summary is presented in the table below:
|
TRX |
BNB |
WINNER |
|
|
Outlook |
Trading inside a horizontal channel |
Ascending Broadening Wedge (Bearish) |
TRX |
|
Pattern & Indicators |
Breakdown from an ascending support line. |
Bearish Divergence |
TIE |
| Trade Setup | N/A | N/A | N/A |
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.
