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Key Insights:
- On Friday, BNB joined the broader market in positive territory, gaining 1.42% to end the day at $235.7.
- US economic indicators and support from the crypto market offset bearish Binance-related news.
- However, the technical indicators remained bearish, supporting a return to sub-$225.
On Friday, binance coin (BNB) gained 1.42%. Partially reversing a 2.72% loss from Thursday, BNB ended the day at $235.7. Despite the bullish session, BNB fell short of the $240 handle for the first time in eight sessions.
BNB Price Action
This morning, BNB was down 0.17% to $235,3. A mixed start to the day saw BNB rise to an early high of $237.5 before falling to a low of $235.2.
Daily Chart
The Daily Chart showed BNB/USD remained below the lower level of the $262 – $257 resistance band. However, BNB/USD continued to hold above the upper level of the current $230 – $225 support band.
Looking at EMAs, BNB/USD currently sits below the 50-day ($260) and 200-day ($290) EMAs, signaling bearish momentum over the near and long term.
Notably, the 50-day EMA pulled back from the 200-day EMA and reflected bearish momentum.
Looking at the 14-Daily RSI, the 39.81 reading signaled a bearish outlook and aligned with the 50-day EMA, supporting a run at the upper level of the current $230 – $225 support band.
BNB 4-Hourly Chart
Looking at the 4-Hourly Chart, the BNB/USD faces strong resistance at the $240 psychological level. BNB/USD sits below the 50-day ($240) and the 200-day ($252) EMAs, sending bearish signals over the near and longer term.
Significantly, the 50-day EMA fell back from the 200-day EMA, signaling a likely return to sub-$230 to bring the lower level of the $230 – $225 support band into view.
BNB/USD should move through the 50-day EMA ($240) to support a run at the 200-day EMA ($252) and the lower level of the $257 – $262 resistance band.
The 14-4H RSI reading of 41.22 indicates a bearish stance, with selling pressure outweighing buying pressure. Significantly, the bearish RSI aligns with the EMAs and supports a return to sub-$230.
On Friday, the US Jobs Report provided investor relief. After the ADP nonfarm employment change numbers, a 209k increase in US nonfarm payrolls eased bets on a more hawkish Fed policy outlook.
However, there was no euphoric rally, with US average hourly earnings coming in hotter than expected. Average hourly earnings increased by 4.4% year-over-year versus 4.4% in May. Economists forecast a 4.2% increase.
While the US economic indicators provide support, Binance-related news continued to grab the crypto news headlines. Reports of Binance executives leaving and Binance cutting staff in response to the increased regulatory scrutiny and SEC filing were bearish.
Binance CEO CZ attempted to downplay the recent departures, saying,
“More FUD about some departures. Yes, there is turnover (at every company). But the reasons dreamed up by the news are completely wrong.”
CZ added,
“As markets and the global environment for crypto changes, as our organization evolves, and as personal situations change, there is turnover at every company.”
BNB price action in the coming days will show whether CZ has convinced the markets that there are no personal issues at the top end of the Binance food chain.
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.
SEC v Binance-chatter will remain the focal point. However, investors should track the crypto news wires for regulatory reports from other jurisdictions.
We also expect SEC v Ripple case-related news to move the dial. A Ripple victory would lead to a change in approach by the SEC and US lawmakers.
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