In this article, we compare the price movements and technical indicators of both Tron (TRX) and Binance Coin (BNB). Our goal is to discover possible trade setups in both.
This allows us to rank the potential of each in the summary. Before we begin, let’s take a look at our most recent video about Tron:
Tron (TRX) vs. Binance Coin (BNB): Price Outlook
On Dec 17, 2018, the price began a rapid upward movement. It reached a high of $0.035 on Jan 10, 2019. A gradual increase followed. Since then the price has been trading inside the horizontal channel outlined in the graph below.
A horizontal support line is traced at $0.217 and while a horizontal resistance line is traced at $0.315. The price has touched both the resistance and support lines of the channel three times.
The price of BNB has developed a distinct trading pattern. After reaching a low of $6.03 on Jan 10, Binance Coin began an upward movement.
It has since been trading with a broadening ascending wedge. Both resistance and support lines are upward facing. However, this is a bullish pattern which means that a breakdown for BNB appears more likely than for TRON at the current time.
These patterns alone, however, are insufficient in determining short-term price fluctuations. To determine that we must examine the coins along a short time frame.
Tron’s Short-Term Ascending Channel
To begin, the price of TRX is analyzed at two-hour intervals from Apr 15 to May 8.
On Apr 25, the price made a low of $0.214. A gradual increase ensued and the price reached a high of $0.256 the same day. It has been trading inside an ascending channel since:
Currently, the price is trading very close to the resistance line of the channel. While trading inside the channel, the price has increased in value by 16%.
To better determine future price levels, we have outlined the RSI and the MACD alongside Tron’s price in the graph below:
On May 6, the price reached an hourly high of $0.025. It continued to increase and made another high of $0.0264 on May 8.
Similarly, the RSI and the MACD made a high on May 6. However, they have continued to generate lower values since.
This is known as bearish divergence and often precedes price decreases. Thus, there is the possibility of short-term drops from the resistance line toward the support line.
Now, let’s examine a possible trade setup for this potential decrease:
Short Trade Setup for Tron
Since the price is currently trading close to the resistance line of the channel, we are going to analyze a possible trade setup with an average entry of $0.026. At the time of writing, TRX was trading near this level on Binance.
A stop-loss is placed above the May 8 high and the current resistance line at $0.0266. This is a stop-loss of 2%.
Our target would be set at the support line of the wedge at $0.0244. Combined with the stop loss presented earlier, this would present a 3:1 risk to reward ratio. Based on our analysis of technical indicators, we believe this to be likely.
Now, let’s take a look at the short-term trading pattern for Binance Coin.
Binance Coin’s Horizontal Channel
On Apr 16, the price of Binance Coin reached a low of $18.6. A rapid upward move ensued and the price made a high of $25.8 on Apr 20. A gradual decrease brought it to $21 on Apr 24.
The price has been trading inside a horizontal channel with resistance at $25.0 and support at $21.0.
At the time of writing, the price is trading right at the support line of the channel.
Will the price break down?
To assess this possibility, BNB price is analyzed at two-hour intervals alongside the 50-,100-, 150- and 200-period moving averages (MA) below:
We can see that several bearish crosses have occurred between the aforementioned moving averages. Furthermore, on May 8, the 50-period MA crossed below all three other MAs.
This is a strong indication that a downtrend has begun and the price is likely to decrease.
We do not see any current trade setups which offer an acceptable risk to reward ratio. A long-trade towards the resistance line of the channel was considered, but due to the long lower wick of $19.53 on May 8, we do not see a justifiable place to put a stop-loss.
Conclusion
To conclude, TRX is trading inside a long-term neutral pattern, while BNB is trading inside a bearish one. The technical indicators give a bearish outlook for both coins. However, due to the position inside a pattern, a profitable short-trade is given for TRX.
This is not the case for BNB.
We believe that price decreases are in store for both Tron and Binance Coin. However, we believe that TRX has a better chance of reversal and a smaller magnitude of decrease in case it does not reverse.
A summary is presented in the table below:
|
TRX |
BNB |
WINNER |
|
|
Outlook |
Trading inside a neutral pattern |
Ascending Broadening Wedge (Bearish) |
TRX |
|
Pattern & Indicators |
Bearish divergence developing in an ascending channel |
Bearish cross between several moving averages |
Tie |
| Trade Setup | Short trade with 3:1 1 risk to reward ratios | 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.
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.
