Binance Coin enjoyed a strong rally over the past 24 hours, busting through the top of its ascending channel on the 4-hour time frame. Price is also testing the full Fibonacci extension on its latest pullback.
The 100 SMA is still above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the rally is more likely to gain traction than to verse. However, the gap between the indicators is narrowing to reflect slowing bullish momentum.
In that case, BNB could still retreat to nearby support areas to gather more bullish energy before heading further north. The broken channel top could contain some buy orders, but a larger dip could last until the mid-channel area of interest or the dynamic inflection points at the moving averages.
Stochastic is already indicating overbought conditions and is starting to turn lower. This signals that selling pressure would likely pick up and lead to a correction. Similarly RSI is in the overbought zone as well to indicate exhaustion among buyers.
Binance Coin and Tron have been the only positive runners so far while the rest of the cryptocurrencies are seeing a lot of red. This suggests that the rally was likely spurred by the BTT listing on the exchange and the airdrop to users.
Apart from that, expanded use cases have fueled demand, particularly the use of Binance Launchpad for the BitTorrent Token sale, which concluded in under 15 minutes. The exchange mentioned:
“In the BNB session, all 23.76 billion BTT were sold to token sale participants within 13 minutes and 25 seconds. Meanwhile, in the TRON session, all 35.64 billion BTT were sold within 14 minutes and 41 seconds.”
This is highlighting the potential for the exchange and its coin to attract more investors and demand in the industry.