- BNB experiences 7 consecutive daily candle drop as it loses 6% in last 24 hours.
- Death cross forming on BNB, $15 incoming?
- US launches 75% discount on BNB fees can it push a reversal?
Binance cryptocurrency exchange’s native token, Binance coin (BNB), is in a freefall as price witnessed a seven day consecutive drop in returns. Dropping 6.58% in the past 24 hours, the BNB/USD perma bulls are starting to get worried as daily candle lingers below wedge support at $17.2939 USD, as at time of writing.
However, with the oscillators deep into the oversold region, a bullish reversal looks set to follow the short term downtrend in a few days as bears lose strength in the market.
BNB/USD’s Nine Day Capitulation Streak Risks Test at $14.30 USD
While the title may be misleading in absolute terms, the green candle recorded on Nov. 17 is no cause for celebration for the bulls as the eight day capitulation streak (bar Nov.17) spells doom for the exchange token. Having failed to break resistance at $23.00 during the short run bullish momentum in October due to China’s positive remarks on blockchain, BNB has witnessed a rather torrid period in the past week, turning resistance to support levels.
With bears strongly having a hold of the market, technical indicators signal a possible downward trend in price towards the support levels at $15 USD.
Death Cross Forms as Price Breaks Wedge Support
Looking at the daily charts, BNB/USD is at the edge as the price dances below the wedge support risking a push towards major support at $14.30 USD. If the current candle closes below the support level, it would offer an excellent opportunity to short the pair. The bearish sentiments are further strengthened by the formation of the death cross on BTC’s price on Nov 19, which has been followed by the widening of SMA 50 from the SMA 200 showing cloudy signs for the pair.
Bollinger bands (BB) also predict bearish signals on BNB/USD as price cuts below the lower band, which means a downtrend is in the offing, With the bands expanding from the squeeze, the price looks set to test the lower support levels, but could the coin’s bulls and recent developments around Binance force a reversal?
Clutching at Straws: Can Lower Trading Fees Drive BNB Adoption?
While BNB may have a number of utilities, lower trading fees on Binance remains the core function to users. Today, following BNB’s 6% drop against the green buck, Binance.US launched a promotion to traders using BNB to pay their trading fees. Discounts up to 75% in trading fees will be offered to users opting for BNB trading fees in a bid to drive up adoption of the coin.
— Binance.US (@BinanceAmerica) November 20, 2019
Can the discounts and #BUIDL spirit across the community push the coin back to its all-time highs recorded in June at $42 USD? Or at least end the bearish cycle experienced in the past week?
Images from TradingView
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Source: Coin Gape