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Key Insights:
- On Friday, BNB joined the broader market in the positive territory, gaining 1.27% to end the day at $239.
- US economic indicators delivered Friday support ahead of reports of a Binance US deal with the US SEC.
- The technical indicators turned bullish, signaling a return to $250.
On Friday, binance coin (BNB) gained 1.27%. Partially reversing a 0.84% loss from Thursday, BNB ended the day at $239. Despite the bullish session, BNB fell short of the $250 handle for the second consecutive session.
After a choppy start to the day, BNB fell to a late morning low of $232. Steering clear of the First Major Support Level (S1) at $230, BNB rose to a late afternoon high of $239. However, falling short of the First Major Resistance Level (R1) at $241, BNB eased back to end the day at $239.
Binance Makes a Deal with the SEC to Address Motion to Freeze Assets
US economic indicators delivered early afternoon price support. A sharp pickup in consumer sentiment and expectations supported a more optimistic outlook for the US economy.
While the US economic indicators delivered broader market support, news of Binance striking a deal to address the SEC’s motion to freeze Binance US assets supported a breakout Saturday morning.
Binance, Binance US, and the SEC reportedly agreed on a deal restricting access to private keys to Binance US employees. Awaiting a sign-off from the Federal Judge, the agreement will prevent Binance Holdings staff from having access to private keys for US wallets.
The SEC filed a motion to freeze the assets of Binance US shortly after filing charges against Binance, Binance US, and Binance CEO CZ.
This morning, there were no references to the SEC deal on the Binance US or CZ Twitter pages.
The Day Ahead
It is a quiet day ahead, with no US economic indicators to provide direction. The lack of external market forces leaves BNB in the hands of the crypto news wires.
While SEC v Binance-related news will continue to move the dial, regulatory chatter from other jurisdictions also need consideration.
However, investors should also monitor SEC v Ripple case-related news. A Ripple victory could ease market jitters over an SEC victory in the SEC v Binance case.
Binance (BNB) Price Action
This morning, BNB was up 3.30% to $247. A bullish start to the weekend saw BNB rise from an early low of $237 to a high of $249. BNB broke through the First Major Resistance Level (R1) at $241 and the Second Major Resistance Level (R2) at $244.
BNB Technical Indicators
Looking at the EMAs and the 4-hourly candlestick chart (below), the EMAs sent bullish signals. BNB sat above the 50-day EMA ($246). The 50-day EMA narrowed to the 100-day EMA, with the 100-day EMA flattening on the 200-day EMA, sending bullish signals.
A hold above the 50-day EMA ($246) would support a move through R3 ($251) to target the Wednesday high of $253. However, a fall through the 50-day EMA ($246) would signal a reversal and bring S1 ($234) into view.
Resistance & Support Levels
BNB has to hold above the Major Resistance Levels and the $237 pivot to target the Third Major Resistance Level (R3) at $251. A move through the morning high of $249 would signal an extended breakout session. The crypto news wires should be crypto-friendly to support an extended rally.
In the event of an extended rally, BNB would likely test resistance at the Wednesday high of $253. BNB sits well below the June high of $309.
A fall through Major Resistance Levels and the pivot would bring the First Major Support Level (S1) at $234 into play. However, barring a crypto event-fueled reversal, BNB should steer clear of the Second Major Support Level (S2) at $230. The Third Major Support Level (S3) sits at $223.
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