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Bitcoin’s steep drop to $50,000 pushed Binance Coin, FTX Token, OKex, and Huobi Token to lower support levels, but data reveals that exchange tokens remain bullish.
Before Coinbase’s Nasdaq listing on April 14, there was a tonne of speculation, and many cryptocurrencies rallied in the lead-up to the case.
Traders, on the other hand, usually buy the speculation and sell the news. In this scenario, they purchased before the disaster, and then some buyers seem to have actively booked gains. As a consequence, some big cryptocurrencies, like Bitcoin, experienced a correction (BTC).
Several exchange tokens surged in the run-up to Coinbase’s listing, when traders bid up their value in response to Coinbase’s $100 billion valuation. After almost a week of trade on Nasdaq, let’s have a peek at how exchange tokens have performed since the listing.
Binance Coin (BNB) was trading at $256.72 on February 19 before rallying to an all-time high of $638.56 on April 12, giving holders a 148.73 percent return.
On April 18, the coin experienced benefit booking over $600 and corrected to the 20-day exponential moving average ($463). However, the bulls did not cause the price to fall below the 20-day EMA, which is a good indication.
Both moving averages are also sloping upward, and the relative strength index (RSI) is above 68, suggesting that the bulls are in control. Buyers can encounter opposition at $600, but if they can overcome it, the BNB/USDT pair could rise to $638.56.
The bears will attempt to halt the uptrend once more in the $600 to $638.56 range. If the price falls from this level, it could fall down to $428, and the pair could stay range-bound for a few days.
If the bulls push the price beyond the all-time high, the pair could gain momentum and surge to $832. This bullish outlook will be made null and void if the bears plunge and keep the market below $428.
Such a move will suggest that supply exceeds demand and that could pull the price down to $348.69.
FTX Token (FTT) increased by 106.76 percent from $28.82 on February 19 to an all-time high of $59.59 on April 14. Since then, the token has been in a corrective process, but the bulls have not allowed the price to fall below the 20-day EMA ($48.70). This means that heavy buying on dips is warranted.
The news of the FTX exchange burning over $6.4 million worth of FTT, $2 million more than their previous record, is likely to attract buyers as it shows the exchange has been doing robust business. As more tokens are burned, the supply will reduce and with increasing demand, the price is likely to move higher.
If bulls would lift the market beyond $52.55, the FTT/USDT pair could reach $59.59. If the bulls can push the market beyond this resistance, momentum would definitely pick up and the pair could reach $71.89.
However, if the bulls are unable to push the market beyond $52.55, it will imply that demand at higher prices has dried up. This might energise the bulls, who would then attempt to drive the market down to the 50-day simple moving average ($41.32).
This is a significant support level to keep an eye on since the price hasn’t closed below it since mid-November of last year. As a result, a break below it indicates a shift in direction and opens the door to a deeper correction to $32.
Huobi Token (HT) was trading at $18.94 on February 19, and from there it rose to an all-time high of $26.89 on February 20, but it has not been able to get close to that amount since.
The token experienced a sharp correction after reaching an all-time high, and it fell to an intraday low of $12.13 on March 25, losing about 55 percent of its value from the highs.
HT/USDT daily chart. Source: TradingView
After a significant drop, the price usually consolidates in a range before beginning the next trending step. The same thing occurred with the HT/USDT set. The pair traded between $12.13 and $18 until April 10, when the bulls moved the market beyond the resistance level.
However, the bulls were unable to maintain the breakout as the stock fell from $22.76 on April 12 to re-enter the range on April 18.
The bulls are attempting to defend the 50-day SMA ($16), but are finding it difficult to keep the market over $18. This demonstrates higher-level sale. If the price falls and breaks below the 50-day SMA, the pair could fall to $12.13, where investors could enter.
In contrast, if the bulls would keep the market over $18, the pair could rebound to $22.76. A break through this resistance level could push the price up to $26.89. To restart the uptrend, the bulls must break through this resistance.
OKEx (OKB) increased by 98 percent from $12.50 on February 19 to an all-time high of $24.74 on April 12. However, it was not a one-way street for the investors, but more a roller coaster journey.
The coin reached an intraday high of $23.80 on February 22 before plummeting to $12 on March 25, losing about half of its value from the highs. However, rather than forming a range, the price soon began a V-shaped turnaround.
While the bulls broke through the $23.80 barrier on April 12, they were unable to maintain the higher levels. The OKB/USDT pair fell sharply once more, reaching an intraday low of $13.92 on April 18.
The bulls are now attempting to launch a relief run, but have encountered resistance at the 20-day EMA ($17.98). This indicates that momentum has shifted negative and that traders are selling on rallies. If the price falls and falls below $14, the pair could fall to $12.
A fall below this amount may exacerbate the selling and send the pair as low as $8. The 20-day EMA has begun to decline, and the RSI is just below the midpoint, indicating that the bears have a marginal advantage.
If the bulls drive and sustain the price above the 20-day EMA, this pessimistic opinion will be invalidated. Above this amount of resistance, the pair could reach the 61.8 percent Fibonacci retracement level of $20.60. This amount is likely to serve as hard resistance once more, but if scaled down, the pair could retest $24.74.