Binance Coin BNB (BNBUSD) has had a challenging third quarter of 2020.
The coin’s price has increased from just over $16 to over $28 as larger coins like Bitcoin (BTCUSD) and Ethereum (ETHUSD) remain stable. Many positive developments have also taken place on the Binance Exchange as the team delves deeper into the product offering available on the world’s largest exchange by trading volume. So, in Q4, what does BNBUSD hold?
Fundamental Analysis
Binance Coin is a beneficiary of several consolidations and Binance exchange initiatives. One of the initiatives Binance took in 2020 was the Binance Smart Chain, which could host multiple blockchain applications. DeFi is currently at its peak, and many projects are listed on the Binance Smart Chain. Trust Wallet recently met the requirements for inclusion on the Binance Smart Chain.
Speaking of Binance’s new initiative, the Binance team has unveiled a new product called Binance Earn. Binance Earnings is a new landing page that brings together Binance’s various passive earning products on one page, making it easier for users of different Binance inactive earning sites to manage their portfolios. A single portal now includes Launchpool, Flexible Savings, Locked Savings, and Asset Management (Binance Liquid Swap & Dual Savings) products.
There are also various gifts organized by the company periodically. They recently celebrated the first anniversary of the launch of Binance Futures with a $1,000 Bitcoin giveaway. These initiatives continue to generate investor interest in Binance Coin.
Since most of these stocks on Binance require members to purchase Binance Coin, this token continues to generate demand. With this demand, the US dollar should have forgotten the third quarter. In Q3 2020, BNBUSD gained 34.46%, 12%, and 26.4%, respectively, in Q3.
Technical Analysis
The technical analysis of the BNBUSD pair begins with a weekly chart that looks at the price action following a typical uptrend impulse wave pattern. The current wave pattern, 1234, was completed when wave 5 broke out of the support level of 25.8437209. The price needs to establish a high above 33.1005119 to resume the uptrend. Failure to set this level higher will stall the progression of the uptrend and may even signal its reversal.
BNB-USD Weekly Chart: October 3, 2020
The daily chart shows a short-term price pattern that recently formed a symmetrical triangle. The 5th impulse wave seen on the weekly chart as bullish price action over the past two days is currently challenging the line, the triangle’s upper boundary. The question for buyers and sellers is whether this bullish price movement will deviate from the triangle (according to technical expectations) or if this boundary line will cause a decline, misleading these expectations.
BNB-USD Daily Chart: October 3, 2020
If we look at the daily chart, we can see that the price maintained a very slow uptrend from April 2020 to August 2020, when the price entered a steep uptrend and formed the basis of the triangle. Triangles are a continuous pattern. The price will break out of the upper triangle and continue rising. If this expectation is realized, BNBUSD will target its previous high of 33.10005119. This is the initial goal of Breakout. If the price increases this high, the uptrend will continue, and the subsequent price action target will be the 37.3544928 price level. Further gains are possible at 42.8596445 (highest on June 17, 2019).
On the other hand, the upper boundary of the symmetric triangle may resist price movement and cause the price to fall. About 1/5 of a symmetric triangle does not lead to a trend continuation. If this triangle falls within the 20% and leads to a trend reversal, we can expect the price to drop below the triangle and target the support line of 19.587866. However, this price action needs to break the short-term support at 25.8437209 to become a reality. The next downside target is at 17.7111103, while 14.4580661 remains vital to the picture as this price point acts as crucial support for most of 2020.
The long-term trend remains strong as the price sits above the 5th impulse wave of the 12345 Elliott bullish wave pattern. In other words, price action remains neutral as it consolidates in a triangle pattern. The mood in this phase only changes when the price breaks the triangle.
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