As the entirety of the cryptocurrency market had been suffering the negative consequences of the implosion of FTX, once one of the largest crypto exchanges in the world, BNB has been no exception, but things could be looking up.
Indeed, BNB, a.k.a. Binance Coin, could be one of the best crypto investments at press time, according to the TradingView technical analysis (TA) presented by recognised crypto experts at TradingShot on December 18.
Per this analysis, the strong pull-back that the token has been demonstrating since the high of November 27 (earlier the lower high of the FTX crash on November 8) looks to be over as the one-day relative strength index (RSI) has “breached below the 300.00 oversold barrier and is rebounding.” As the analysts further clarified, there is an evident historical pattern that strongly signals ‘buy’ in the medium term:
“This is identical in price action to the June low formation which resulted into a bottom that kick-started a rise to the previous Lower High (now Resistance). (…) In any case, every time the 1D RSI drops below 300.00 and then rebounds, it is a strong buy signal on the medium-term.”
Furthermore, “the symmetrical trend-lines (…) have formed first Support (green) and later Resistance levels (red).” In conclusion, the analysts believe that the time could be coming when BNB turns into a long-term buy “as the upcoming 320.00 Resistance (Nove 27 High) test will break the 1W MA50 again.”
“If the fractal continues to be repeated, then the next curve pattern will peak significantly above the 1W MA50, thus turning the Binance Coin into long-term bullish territory. Perhaps the best time to buy BNB is now, we believe it will be one of the best investments of 2023.”
Not all good news
Meanwhile, the concerns over the outflows from Binance have triggered the longest losing streak for BNB since October, as the platform witnessed net withdrawals worth around $6 billion in the past three days, as Bloomberg’s Joanna Ossinger reported on December 19.
At the same time, the 7-day price forecast for BNB, as per PricePredictions’ machine-based algorithms that take into account technical indicators like the RSI, moving average convergence divergence (MACD), moving average (MA), and Bollinger Bands (BB), sees BNB as trading at the price of $242.50 on December 26, down 2.71% from its current price.
Moreover, the 1-day technical gauges are currently in the ‘sell’ zone, as summarized by the oscillators dwelling in the ‘neutral’ at 8 (as opposed to ‘buy’ at 2 and ‘sell’ at 1) and moving averages pointing to a ‘strong sell’ at 13 (as opposed to both ‘neutral’ and ‘buy’ at 1).
BNB price analysis
At press time, BNB was changing hands at the price of $249.26, up 1.01% on the day but still down 10.15% across the past week and 7.95% as compared to 30 days before, as the charts demonstrate.
With a market capitalization of $39.87 billion, BNB remains the fifth-largest cryptocurrency by this indicator, according to the CoinMarketCap data retrieved by Finbold on December 19.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.