A BNB pivot sell sign formed recently when the altcoin went on a strong rally in the past few weeks as we reported in the Binance coin news.
The BNB coin that some see as a huge indicator for the altcoin market, was on a strong rally over the past few weeks after the weeks of strong correction. BNB surged against both the US dollar and Bitcoin and now a BNB pivot sell sign has formed. The coin doubled against Bitcoin over the past two weeks and surged higher but it also benefited from the blockchain’s entry into the decentralized finance space. The coin is rallying due to the launch of the Binance Smart chain which allows smart contracts on the network. The coin is forming a selling signal against Bitcoin while the Tom Demark Sequential formed a sell 9 candle. This indicator forms when the asset is at an inflection point in its trend.
Binance Coin was on a tear over the past few weeks but in two weeks’ time, the coin doubled against Bitcoin which came as shock to many traders. The coin is up by about 30% in the past three days alone despite the drop in the price of the leading assets. The coin’s resilience came as Binance rolled out the Binance Smart Chain which is a blockchain that runs on the Binance chain and sets the two networks apart. One of them can facilitate smart contracts that are compatible with the ETH virtual machine. A press release read:
“Created to run parallel to Binance Chain, BSC enables the creation of smart contracts for tokens on the Binance-branded blockchain. It also introduces an all-new staking mechanism for BNB, one of the world’s top cryptocurrencies.”
Despite the fundamental developments, the coin could be poised to reverse as well. BNB formed a sell 9 candle against Bitcoin according to a Telegram channel that tracks the TD indicator. These signals are seen when an asset is poised to reverse to the downside. Historical instances of this indicator form signals that can be seen in the charts everywhere. While the coin did form this signal, analysts believe that the coin could stay afloat because of the Binance’s pivot to defi. Kelvin Koh also commented on the coin’s potential:
“7/ For $BNB, this creates a constant demand for holding/staking the token making it an attractive asset to own. Meanwhile fees that accrue from the exchange continue to burn existing supply. I expect $BNB to claw back the underperformance YTD as a result.”
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