Binance Coin Price Analysis: BNB Price Halted While Coming Into The Radar Of European Regulators

Binance coin might see a downside correction in the near future
  • BNB Price is currently on a consolidated move with a gain of 0.6% in an intraday session. In contrast it has come under the radar of European regulators for stock token offering.
  • Technical Indicators for BNB price suggests an downside correction. In contrast, the BNB/BTC pair is seeing no momentum and is currently at 0.0101 BTC.

Why To Invest In BNB?

Binance Coin(BNB) coin was launched in 2017 as an initial coin offering. It was initially launched as an ERC-20 token with a supply capped at 200 million tokens. After the launch of Binance chain Mainnet in 2019 it no longer hosted on Ethereum. BNB uses Byzantine Fault Tolerance (BFT) consensus mechanism which does not permit the mining of the token. Instead, there are validators that earn from securing the network by validating blocks. BNB price has seen a significant growth in the past and continue the same journey.

The Financial Times reported the news on Thursday, saying that European regulators, including the U.K.’s Financial Conduct Authority (FCA), are examining whether Binance complied with security rules before launching trading in stock tokens.This examination has restricted the run in BNB price and continue in downtrend for a while.

Technical Indicators Suggests Consolidated Move For BNB Price

Source: Trading view
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The weekly technical chart of Binance coin  highlights a bearish move. BNB price is in a consolidated rally in the daily time frame. Resistance on the upside for BNB can be seen at $600. It can bounce back while going down from $450. It is trading above 50 and 100 Moving Average. The 50MA (Red) line is at $363, making it temporary support for the price. The coin has formed a consolidated zone on the daily chart. If the price breaks 20% above the zone then a strong bullish momentum can be seen.

RSI(Bearish): It is trailing at 54.76, showcasing its presence in the neutral zone. There is a negative slope formation in the RSI, highlighting a negative sentiment for the price.The RSI depicts a bearish momentum for BNB.

Conclusion

Binance Coin price has seen a gain of more than 200% from the start of the year. The recent news regarding the Binance coming under the lens of European regulators has stopped the price to go further up. BNB can soon overcome this situation and can continue the bullish move.

Technical Levels

Major Support:$450

Major Resistance:$600

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Adarsh Singhhttp://www.thecoinrepublic.com
Adarsh singh is an Stock market and financial market advisor trader with background in Engineering. He specialises in Technical Analysis while possessing strong computational skills.

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