BNB, 1INCH & CAKE Fail to Sustain Upward Movements

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In Brief
  • BNB is trading above long-term support at $320.

  • 1INCH has broken down from an ascending support line.

  • CAKE is trading inside a short-term descending wedge.

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Binance Coin (BNB) is trading above long-term support at $320 and following a short-term descending resistance line.

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1inch (1INCH) has broken down from an ascending support line and reached the $2.25 support area.

Pancake Swap (CAKE) is trading inside a short-term descending wedge.

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BNB

BNB dropped soon after it reached an all-time high price of $691.7 on May 10. It continued the downward movement until May 23, when a low of $211.70 was reached. This initiated a strong bounce, leading to a high of $433 on June 3.

However, BNB has been moving downwards since.

It has currently returned to the $320 area, a level which has previously acted as support. Whether it bounces or breaks down from it will likely determine the direction of the future trend.

A breakdown would take it back towards $200 while a bounce would take it towards the closest resistance at $450.

Technical indicators are bearish, supporting the possibility that a breakdown will eventually occur. This is especially evident by the bearish cross in the Stochastic oscillator and the RSI rejection from the 50 line.

Chart By TradingView

The shorter-term two-hour chart shows that BNB is following a descending resistance line since June 3 and is potentially trading inside a descending wedge. The support line of the wedge (dashed) has not been validated sufficient times as to be confirmed.

The bounce from the May 23 lows looks like a corrective A-B-C structure. However, the ensuing decrease also looks corrective.

Therefore, the most likely scenario would have BNB bouncing and breaking out in the short-term. It could do so after reaching the 0.618 Fib retracement support level at $296.

Despite this, it is likely that the long-term trend is bearish, and another decrease will eventually follow.

Chart By TradingView

Highlights

  • There is support and resistance at $320 and $450.
  • BNB is following a short-term descending resistance line.

1INCH

1INCH has been falling since May 8, when it reached an all-time high price of $7.97. It broke down from an ascending support line on May 19 and validated it as resistance on June 6 (green and red icons).

On May 23, the token reached a low of $1.77. The immediate bounce reclaimed the $2.25 area, validating it as support. However, the upward movement could not be sustained and 1INCH is in the process of falling towards the $2.25 area once more. 

Technical indicators have turned bearish. The RSI has fallen below the 50 line and the Stochastic oscillator has made a bearish cross. 

The daily candlestick is shaping up to be a bearish engulfing one. Therefore, another revisit of the $2.25 area seems likely.

Chart By TradingView

Highlights

  • 1INCH has broken down from an ascending support line. 
  • There is horizontal support at $2.25.

CAKE

CAKE has been increasing since May 23, when it reached a low of $9.44. The immediate bounce served to validate the $9.80 area as support. 

However, the ensuing upward movement was a three wave structure (highlighted in red), indicating that the bounce was corrective.

CAKE has been falling since June 3. The decrease has taken the shape of a descending wedge, which is considered a bullish reversal pattern. 

Therefore, it is likely that the token finds short-term support and breaks out. It is currently right at the 0.618 Fib retracement support level. 

Nevertheless, due to the lack of a bullish impulse, it is also likely that the longer-term trend is bearish.

Chart By TradingView

Highlights

  • There is support at $9.80.
  • CAKE is trading inside a descending wedge.

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate 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.

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