Binance Coin (BNB) Struggles Amid The New Wave Of Declines

Read CoinChapter.com on Google News

Yerevan (CoinChapter.com) — BNB, the native coin of the Binance crypto exchange platform, lost its bullish momentum as it dropped another 11 percent in value, complying with the wave of ubiquitous declines across the market.

As an exchange token, BNB demand is correlated with the volumes on the platform. Thus, if the market as a whole is in crisis, the exchange volumes would suffer, subsequently dragging the token down with it. Technical Indicators on BNB’s daily chart do not inspire much bullish confidence either, as of writing.

Read more: Dead Cat Bounce? Binance Coin (BNB) Rebounds 79% On Altcoin Market Recovery

Technical Indicators On BNB Daily Chart

After the May 19 bloodbath, BNB has made attempts to recover, only to meet a resistance margin at approximately $388 (black horizontal line on the chart below). Approaching the resistance line on May 27, BNB declined to hit $334 in Friday’s London session.

Moreover, the Binance coin seemed to face another resistance trend line consistently since May 12. If the down-sloping line proves its significance in the upcoming sessions, the token might drop even lower.

BNB also faced a death cross on May 21, as did many other coins on the crypto market. On the chart above, the 20-day exponential moving average (EMA-20: blue wave) crossed below the 50-day moving average (MA-50: red wave). This indicator predicts a bearish behavior until the EMA-20 can restore above the MA-50.

Crisis Continued

Binance coin was not the only one struggling for a breakout. Alpha coins like Bitcoin (BTC) and Ethereum (ETH) were also counting losses. Bitcoin traded at $36,462 in the London session Friday, not yet able to break above the $40,000 price margin with any consistency.

Read more: The 4th Largest Bitcoin Whale Buying More BTC Signals Additional Rebound to $42K

Ethereum smart contract platform was facing similar problems. The ETH token was unable to fully recover, despite the temporary gains from May 24 through May 26. Ethereum traded at $2,605 in the European session Friday, failing to get back above the $3,000 margin, affecting BNB as well.

Read more: Ethereum Price Could Reclaim $3,000, Says Top Executive

Much like the major cryptocurrencies, smaller ones also counted losses. 15 percent down in the last 24 hours for Ripple’s coin XRP, according to CoinMarketCap. Dogecoin lost 10 percent in the same period. Cardano’s ADA also declined by 14.6 percent.

With significant losses across the board, the crypto market faced another wave of declines. BNB followed suit, losing 14.3 percent in the last 24 hours, facing a resistance trendline capping its attempts to recover. Technical indicators suggest Binance coin could face further losses in the future, should the resistance lines prove effective and the crisis remains unresolved.

Please leave this field empty

Subscribe Today
for our Weekly Newsletter

Email Address *

Free Weekly Crypto News without the spam.

Check your inbox or spam folder to confirm your subscription.