Binance Coin Analysis for September 2022: Finally Hits $44 Billion Market Cap

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Binance Coin’s (BNB) price hits around $278.08 with a $184.54 low. It also reached a $44 billion market cap.

Based on the daily chart for September 16, BNB’s price rejected the 50 SMMA line at $289.50 after breaking the above downtrend trendline. Then, its price fluctuated on the previous trendline’s trendline.

Binance Coin, A Quick Market Analysis 

Binance Coin is the Binance platform’s token used for trading and paying fees on the Binance exchange. This coin was worth $278.08 with a $967 million market volume, whereas the market cap was $44 billion last week.

BNB can be rather challenging for crypto beginners.

Meanwhile, BNB has drastically become one of the most famous cryptos. So, most cryptocurrency enthusiasts are more likely to buy it and be part of more lucrative trading activity with a better exchange.

The platform has previously expressed its plan to upgrade its blockchain in 2023. The said upgrade aims to process 5,000-10,000 transactions every second. When it comes to transaction volume and user base, it is now the largest smart contract chain. It is surpassed Ethereum.

Additionally, the platform has recent announcements regarding the development of a separate blockchain. It aims to offload transactions for faster processing. This is because of the technology’s complexity and the success rate of its deployment.

A Tease for Bears 

Since August 2, BNB’s price has bounced off its support level of $274.09. The token slipped below that barrier on September 6, but there was a subsequent recovery over the next three days by 15%.

With this move, two key things occurred:

  1. A $274.09 hurdle flips into the support floor.
  2. A bullish market structure break, including a higher high at $298.48 relative to the $291.94 swing high on August 30.

The above developments indicated an incoming rally. They also signal a potential uptrend. Additionally, the coin confirmed a $282.73-$257.74 demand zone formation.

A pullback is possible since Binance Coin continuously hovers within the demand zone. This means investors have a chance to open a long position and expect the coin to trigger the 12% run-up, allowing it to collect the buy-stop liquidity above the $307.86-$310.40 swing highs.

The bullish outlook is logical, but investors have to realize that since 2021, there has been a bearish market. For such a thing, they should not be surprised if there is increased selling pressure.

If BNB’s price reaches a daily candlestick below $257.74, the aforementioned demand zone is invalidated. Plus, producing a lower low indicated a bullish thesis. This development can make the token drop lower and fill the $257.74-$245.10 imbalances.

Driving this move home, sellers will see the BNB price collecting the sell-stop liquidity below the $239.40-$233.72 swing low.

Latest BNB Price Analysis 

With regards to the September 16 daily timeframe, BNB’s price successfully broke above the downtrend trendline. However, there was an immediate rejection of the 50 SSMA line at $289.50. As a result, its price fluctuated on the previous downtrend trendline.

Based on the TFLOW Beta Algo, the buyers pushed the BNB’s price higher after generating a TP signal and a Short signal. The Daily RSI fluctuated below 50, which formed a bearish momentum, while there was a negative Daily MACD indicator. As with the 50 daily SMMA was above the price and tried becoming resistance.

By diving into the four-hour chart, the token broke the 50 SMMA and tried to enter the downtrend. There is a possible retest back to the 50 SMMA. This is especially true after $279 was determined as a strong trading area by the Volume Profile indicator.

Although there was a negative four-hour MACD, the lines still tried to crossover. The four-hour RSI was closed to the oversold zone despite fluctuating in the negative areas.

On a medium-term scale, BNB’s price forms a bearish momentum as the indicators, and technical analysis coincide. However, a bearish strength is identified on a short-term scale. Still, there is a requirement for monitoring the price fluctuation range since bullish and bearish scenarios are likely to occur.

With the above analysis, patience and discipline are still critical for a successful trade. If other market conditions are favorable, decent gains are possible. So, doing thorough research is recommended when investing.

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ChesWorkShop commits to presenting fair and reliable information on subjects including cryptocurrency, finance, trading, and stocks. However, we do not have the capacity to offer financial guidance, advocating instead for users to conduct their own diligent research.

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