Binance Coin continued its uptrend, after a pullback in early August. BNB had important support levels to fall back to if faced with sell pressure. In the case of the market’s altcoins like IOTA and Zcash, both coins faced significant resistance near its current price level.
Binance Coin [BNB]
Binance Coin was trading at an important level of $23 which has significance on the longer time-frame. Bollinger bands seemed to begin constricting with BNB just above support. Given some time, this could affirm the idea that price has successfully taken support.
If it comes to pass that BNB faces greater selling pressure, $23 might not hold. BNB can then expect to find support at 100 EMA (pink) or, in a more extreme and unlikely scenario, the 200 EMA (purple) beneath that.
Consolidation is likely to lead to a strong attempt at the next important resistance at $24.2.
Recently, Binance announced 3000 BNB in prizes to participants willing to test BNB staking on Binance Chain. The team behind Binance Chain has been working on a Binance Smart Chain in an attempt to introduce smart contract functionalities to current Binance Chain. BNB has a market cap of $3.37 billion.
IOTA occupies the 21st spot on CMC’s list with a market cap of $1.1 billion. Recently, the co-founder of IOTA Dominik Schiener denied rumors that IOTA might be involved in Bosch’s European cloud solution.
After rising above resistance at $0.41 and turning the level briefly into support, IOTA’s buyers lost steam. The price bounces off support but each time sets a lower high. Each weaker bounce indicated weakening support, and it eventually broke.
CMF indicated capital flow into the market was decreasing. At press time it was in a neutral zone. A tussle between buyers and sellers over the next few days will determine where IOTA is next headed.
On the longer timeframe, IOTA had broken above its key level of $0.35 last week, setting a new high not seen for a year. It is unlikely to lose this important level in the same week. Some consolidation is probable in the coming days.
Zcash showed a mixed performance in August. It did well to reach $100 but the resistance proved too strong to overcome.
During last week’s retest of its support at $80, RSI values were choppy around 50 neutral mark. This meant that the market had not decided on movement in either direction. At press time, a value near 60 still did not confirm an uptrend. RSI needs to be sustained above the 50 zone to signal an uptrend.
It is possible that a rising wedge is being formed by ZEC. If so, it could be rejected at resistance $91, to find support at $80 again. A rising wedge is typically a bearish pattern that can be spotted in trending markets. Generally, it indicates that a drop in the value of the asset is likely.
A break above the trendline and resistance would invalidate the wedge pattern.