Binance is trending lower against bitcoin and is currently consolidating in a short-term symmetrical triangle pattern. A break below the triangle support would signal that the downtrend would forge ahead while a break higher could indicate a potential reversal.
The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. In addition, the short-term moving average appears to be holding as dynamic resistance. A larger pullback could last until the longer-term MA, which lines up with a descending trend line connecting the latest highs of price action.
Volume has been somewhat subdued at the start of the week but investor interest is still present as Binance CEO explained on Reddit that the company is not involved in manipulating the currency price. Traders appear to be waiting for more confirmation before spurring an upside break, though.
Stochastic is still on the move down to signal that selling pressure is present, but the oscillator is also dipping into oversold territory to signal selloff exhaustion. In that case, buyers could regain control and push Binance back up to the next area of interest or the broken support.
Binance is an up and coming Chinese exchange but it has its own cryptocurrency. These tokens were created by an Ethereum smart contract some time ago and a total of 80m BNB coins is kept in reserve, all of which belong to the team. Some believe that the team has sold off some of the BNB to keep price gains in check but it’s also worth noting that they have been issued smart contracts and have no reason to manipulate prices.
Still, it’s also worth mentioning that the Binance team actively buys back some coins off the market every quarter and that 20% of company profits will be used to buy back BNB at market value.