Tron (TRX) and Binance Coin (BNB) have both initiated upward moves within the last few days. While this may be catalyzed by Bitcoin’s recent surge to over $8000, these coins have merits all their own. Will the gains continue or will a reversal soon bring new lows?
A look at current short- and long-term trading patterns alongside an analysis of technical indicators may give us an answer.
If you need to catch up, you can read our previous analysis of TRX and BNB here.
Tron (TRX) vs. Binance Coin (BNB): Price Outlook
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.
SponsoredA 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 the resistance and the support lines of the channel three and four times respectively.
On May 11, after touching the support line, the price began an increase towards the resistance line of the channel.
Last week we initiated a long trade with an average entry of $0.023 and a target of $0.03. The price is very close to reaching our target. We will analyze this trade in more detail in the sections below.
The price of BNB, however, is trading in a different pattern. After reaching a low of $6.03 on Jan 10, Binance Coin began an upward movement.
It has since been trading inside a broadening ascending wedge:
Both the resistance and support lines are upward facing. After touching the support line on May 9, the price began to increase. It is currently trading close to the resistance line.
Since the beginning of the wedge, the price has increased by a massive 350%.
However, this is a bearish pattern. Thus, a breakdown for BNB appears more likely than for TRON at the current time.
To better determine price fluctuations and possible trade setups, we analyze technical indicators and shorter-term time frames in the following sections.
Tron’s Short-Term Ascending Channel
Sponsored SponsoredIn the case of TRX, the price is trading inside a short-term ascending channel. It has been doing so since May when a high of $0.025 and a low of $0.023 were reached. The channel is shown in the graph below:
At the time of writing, the price is trading very close to the resistance line of the channel. Will it break out or does a decrease await?
In order to figure that out, we will analyze the price alongside the RSI:
On May 14, the price reached a high of $0.0265. It continued to increase and reached a high of $0.0288 the next day.
Since reaching a high on May 14, however, the RSI has generated lower values.
This is known as bearish divergence and often precedes price decreases, but the decrease is not very significant in value and is only occurring in short-term timeframes.
Nonetheless, we are able to move the stop loss defined in our analysis further upward.
In our long trade setup, we stated that :
Sponsored“We are going to analyze a possible trade setup with an average entry of $0.023. The stop-loss is placed well below the support line and slightly below the Mar 4 wick low at $0.0207. This is a stop loss of 10%. “
Because of recent market movement, we can move the stop loss below $0.026, for a profit of 10%. Our main target is set at $0.03. Since the price is close to reaching our target and the stop loss also presents a profit, we will consider this trade closed and will not refer to it in future analyses.
Now, let’s take a look at the short-term trading pattern for Binance Coin.
Binance Coin’s Descending Channel
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:
At the time of writing, the price is trading very close to the resistance line of the channel.
Will the price break out or decrease towards the support line?
To decide which is more likely, BNB price is analyzed at one-hour intervals alongside the 10-, 20-, 100- and 200-period moving averages (MAs) and the RSI below:
We can see that the price is trading above all four of the MAs. A bullish cross between the 100- and 200-period MAs occurred on May 14, and one between the 10- and 20-period ones the next day.
Sponsored SponsoredThis might indicate that an uptrend has begun.
The use of these indicators makes it more likely that the price will break out of the channel. It is possible that the price will increase towards the resistance line of the broadening wedge outlined in the first section.
If the price reaches the resistance line, we will assess a possible short trade setup. Until then, we do not see any profitable trade setups.
Conclusion
Sponsored SponsoredTo conclude, TRX is trading inside a long-term neutral pattern while BNB is trading inside a bearish one. The technical indicators give a neutral outlook for TRX and a slightly bullish one for BNB.
Furthermore, we initiated a long trade setup for TRX last week, which we amended today by moving our stop loss to a higher point of 10% profit and closed the trade.
In the case of BNB, the price is trading inside a short-term ascending channel. Furthermore, the technical indicators support price increases.
Therefore, we believe that both BNB and TRX will see price increases during the upcoming days. We believe that both coins have a similar outlook and there is no clear winner in today’s comparison.
A summary is presented in the table below:
|
|
BNB |
WINNER |
|
|
Outlook |
Trading inside a horizontal channel |
Ascending Broadening Wedge (Bearish) |
|
|
Pattern & Indicators |
Slight bearish divergence in an ascending channel. |
Bullish cross between moving averages |
BNB |
| Trade Setup | Stop loss moved higher, target almost reached.
Trade closed |
N/A | TRX |
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.
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