The BNB price decreased considerably last week, creating a large bearish candlestick.
Despite the decrease, the BNB price trades above a minor horizontal support area. Will it be enough to stop the bleeding?
BNB Fails to Sustain Increase
The technical analysis of the weekly timeframe shows that the BNB price bounced at a long-term horizontal support area in June 2022 (green icon) and has traded above the area since.
The price initially fell below the area in July 2023 (green circle) but reclaimed the area shortly afterward. The BNB price has increased since.
Last week, the BNB price increase led to a high of $275. However, the price could not sustain its growth, creating a bearish candlestick with a long upper wick.
It is worth mentioning that the decrease occurred shortly after Binance CEO Changpeng Zhao stepped down as a result of a more than $4 billion fine from the U.S. Department of Justice.
Market traders use the Relative Strength Index (RSI) as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.
Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite. The weekly RSI was rejected by 50, and at the same time, the price fell from $275.
Read More: 9 Best AI Crypto Trading Bots to Maximize Your Profits
The Impact of Binance Wallet
Binance introduced the Binance Web3 Wallet on November 11, a secure, self-custodial cryptocurrency wallet seamlessly integrated with the Binance app.
This wallet comes with a range of innovative features, with a significant highlight being the capability for cross-chain token swaps facilitated via the Binance bridge.
To aid users in navigating these functionalities, the Binance team shared a tutorial on the social media platform X.
In a conversation with BeInCrypto, Mark Venables, the founder of the Crypto Merchant, highlighted the transformative impact of Binance’s Web3 wallet on self-custody in the crypto market.
He noted its potential to enhance security, foster financial autonomy, promote interoperability, drive innovation, and offer educational opportunities. These features empower users, granting them greater control over digital assets while advancing blockchain technology.
Expanding on the self-custody aspect, Venables delved into how Binance’s Web3 wallet strikes a balance between user-friendly design and individual responsibility. He emphasized the wallet’s user-centric approach and measures to ensure users take full responsibility for their digital assets.
Through a secure interface, key management, education, and support, Binance achieves a harmonious blend of usability and user empowerment.
Venables explored the technological innovation within Binance’s Web3 wallet, specifically Multi-Party Computation (MPC).
He explained MPC by stating that:
MPC, or Multi-Party Computation, is a cryptographic technique that allows multiple
parties to jointly compute a function without revealing their individual inputs. In the
context of self-custody wallets like Binance’s Web3 wallet, MPC revolutionizes the
landscape of cryptocurrency storage by introducing a new level of security and
accessibility.
In the context of self-custody wallets, MPC revolutionizes cryptocurrency storage by introducing heightened security and accessibility. Venables highlighted its potential to distribute key management responsibilities, fortifying user assets against compromise while simplifying the user experience for broader accessibility.
The use of MPC, according to Venables, opens avenues for additional features and functionalities, further enhancing the self-custody wallet space.
Read more: How To Buy BNB (Binance Coin) in 4 Easy Steps
BNB Price Prediction: Recovery or Breakdown?
While the weekly time frame provides a mostly bearish outlook, the daily one gives hope for a potential trend reversal.
In this timeframe, the BNB price held above the $225 minor horizontal support area and could create a double bottom, considered a bullish pattern (green icons).
Also, the daily RSI has generated a hidden bullish divergence, which is a strong sign of trend continuation. Although, it is important to note that the indicator is falling and is below 50. If the BNB price bounces, it can increase by 13% and reach the next resistance at $260.
Despite this bullish BNB price prediction, a daily close below the $225 area will mean the BNB price is still correcting. In that case, an 11% drop to the closest support area at $205 could follow.
For BeInCrypto’s latest crypto market analysis, click here.
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