Binance Price Analysis: Wedge Consolidation Pattern
Binance has formed lower highs and lower lows, consolidating in a falling wedge pattern and moving closer to the peak of the formation. This suggests that a breakout in either direction could happen soon.
The chart pattern spans 0.00085 to 0.00120 so the resulting rally or drop could be of the same height. Price needs to close below support at 0.00085 to confirm a selloff or above the 0.00090 level to confirm an upside break.
Note that the 100 SMA lines up with the top of the wedge to add to its strength as resistance. This is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside or that a move lower is more likely.
Stochastic is on the move up to signal that buyers have the upper hand, so another test of the top of the wedge could take place. RSI also seems to be heading higher, although it could also be treading sideways. Once both oscillators hit overbought levels and turn lower, selling pressure could pick up.
Binance has been in a weak spot ever since its hack, and understandably so. Investors could keep dumping their holdings until a positive update comes up, but that seems like a long stretch.
Still, the exchange has offered $250,000 bounty for the arrest of the hackers, citing:
“To ensure a safe crypto community, we can’t simply play defense. We need to actively prevent any instances of hacking before they occur, as well as follow through after-the-fact. Even though the hacking attempt against Binance on March 7th was not successful, it was clear it was a large-scale, organized effort. This needs to be addressed.”
Bitcoin is also under some selling pressure, though, as the “Tokyo whale” reportedly has regulatory clearance to liquidate the remaining 166,000 bitcoins from the former Mt. Gox to pay off creditors. This could lead to another wave lower for this particular digital asset, which Binance might take advantage of.
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