We discussed the upcoming ban of US-Based Traders on Binance and how it could affect BNB in a recent post. The ban definitely had a significant impact on BNB which saw a big bear break with quite a lot of follow-through.
The bears broke below $20 but bulls were quick to buy the dip. The bearish move only lasted about 2 hours and the bulls came back strong with two hourly candlesticks of +2%
The daily chart has now formed a Bullish Hammer Candlestick with a few hours to go. The volume is good, it remains to be seen if there is continuation tomorrow though.
The $19.87 was an important support level because it is the 12-Day EMA on the monthly chart, the bulls were able to defend it which indicates there is still bullish strength for BNB.
The weekly chart remains in a downtrend with BNB still trading way below the EMA’s, if the bulls can’t take over, the EMA’s will cross bearish and we might see a prolonged downtrend.
The monthly chart is definitely in favor of the bulls, though. The increasing bull volume compared to the decreasing bear volume indicates a lot of strength for the bulls and it’s important to note that the monthly chart is in an uptrend.