The recent market upswing took many investors into the bullish side once again. Even though the surge was seen across the entire industry, most altcoins lost the value they gained yesterday. This technical analysis will evaluate whether Binance Coin, TRON, or Chainlink have a chance to continue rising.
Binance was in the spotlight after its CEO Changpeng Zhao stated that the dedicated U.S. division of the cryptocurrency exchange will go live by November. He also recently revealed that the Binance is planning to launch Venus, an open blockchain project focused on developing localized stablecoins around the world to compete with Facebook’s Libra.
After gaining approximately 4.50 percent, Binance Coin lost almost all that value yesterday. As a result, a bearish engulfing pattern is forming on the 1-day chart. This is a technical chart pattern that signals a downward impulse.
At the moment, BNB seems to be held by support provided at the 150-day moving average. If the bearish engulfing pattern is validated, a break below the moving average is expected. Falling below the 150-day moving average could take Binance Coin to test the support given by the 200-day moving average, currently at $24.
It is worth noting that since mid-July BNB mostly traded between the 150-day moving average and the 100-day moving average. Thus, a candlestick close or open below the recent low of $26.75 could be used as confirmation that the 150-day moving average will break. However, if the 150-day moving average continues containing the price of BNB, then a rebound to the 100-day moving average seems more likely.