Key Takeaways:
- Binance coin eyes a price boost after forming a bullish technical pattern.
- Binance CEO CZ said the firm would liquidate its entire FTT holdings.
- FTX exchange called out CZ, stating the firm was financially strong.
NEW DELHI (CoinChapter.com) — Cryptocurrency exchange Binance’s native token BNB price has broken out of a bullish technical pattern called the cup and handle pattern. In detail, the pattern resembles a cup and handle with a U-shaped cup and a handle with a downward drift.
The pattern develops after prices correct from an upside creating a rounding bottom, forming the cup. Prices then rebound towards the prior high before failing to break above it and pulling back, including a smaller rounding bottom called the handle.
Once the price returns to the prior high again and breaks out successfully, the resulting uptrend raises prices to a level equal to the cup’s depth. Thus, if the pattern holds, BNB/USD exchange rate could rise to $554, a jump of nearly 68% from its neckline breakout level.
Furthermore, rival exchange FTX might be heading for bearish pastures. Binance’s CEO Changpeng “CZ” Zhao said his firm would liquidate its entire FTT (FTX’s native token) holdings in the coming months. CZ fears the FTX token might collapse like Terra (LUNA) did in May earlier this year.
The Binance CEO confirmed a large wallet transfer of roughly 23 million FTT tokens (worth $530 million) was part of the funds earmarked for liquidation.
FTX Says Everything Fine: “Competitor Spreading Rumors“
Meanwhile, FTX took to Twitter to assure users of the firm’s financial health while alleging that “a competitor is trying to go after us with false rumors.“
In a series of tweets, the exchange assured users that it had enough funds to cover all client holdings. In addition, FTX stated that the firm had no plans to halt withdrawals. Moreover, FTX reminded users that it undergoes GAAP audits, with more than $1 billion in excess cash.
Related: FTX Token Risks 50% Crash after Binance’s Changpeng Zhao Fuels Terra-like Crash FUD
The crypto exchange also highlighted its “long history of safeguarding client assets.”
FTX’s ended its series of tweets with a call for friendship to Binance CEO CZ, stating they would love it “if we could work together for the ecosystem.”
BNB Looking To Form A Golden Cross
BNB price fell more than 4% between intraday high ($342.2) and low ($327.4) levels on Nov 7, continuing the token’s three-day-long downtrend.
Meanwhile, the BNB token’s 50-day EMA (purple wave) is sloping up toward the 200-day EMA (green wave), giving rise to the possibility of a golden cross in the Binance coin’s future. Traders often consider the pattern an indicator of positive market sentiment and a buy signal.
A golden cross might attract more buyers to the market. As a result, the Binance token price might rise to resistance near $337, a price level BNB had recently flipped into support. Moreover, a break and hold above immediate support might help BNB token price challenge resistance near $354 before retreating.
The relative strength index for BNB is currently neutral, clocking at 62.77 on the daily chart. BNB’s RSI returned to neutral regions on Nov 6 after being overbought for nearly 8 days. An uptrend might result in the RSI becoming overbought again.
Overbought RSI levels often act as precursors to bearish trend reversals. As a result, if BNB price falls, the token might fall to test support near $320. Moreover, failure of immediate support might force the Binance token to fall to support from its 200-day EMA (green wave) near $304 before recovering.
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