Binance smart chain tokens are showing signs of recovery after falling sharply
Binance Coin (BNB) likely completed a pullback with wave 4 by bouncing back from Fib support and the $ 385 horizontal area.
PancakeSwap (CAKE) broke out over an ascending parallel channel and subsequently confirmed this as support.
CertiK (CTK) broke a descending resistance line but was unable to recapture the $ 3 zone thereafter.
The BNB has risen within an ascending parallel channel since June 22nd. It broke out of the channel on August 11th and hit a high of $ 518.9 on August 26th. The high was hit immediately at the 0.618 Fib Retracement Resistance (white).
However, the price failed to break out, hit a lower high and plummeted on September 7th.
Despite the decline, the BNB rebounded from the 0.5 fib retracement support at $ 385. The move is likely to complete a pullback with wave 4.
In addition, the RSI and the MACD both create bullish divergences.
Therefore, if the BNB can hold above the channel’s resistance line, it is likely to break above the $ 510 resistance area.
BNB / USDT daily chart | Source: TradingView
- The NBB likely completed a pullback with wave 4.
- There is support and resistance at $ 385 and $ 510, respectively.
Similar to BNB, CAKE has been rising in an ascending parallel channel since June 22nd. It erupted over the channel on August 5 and peaked at $ 26.6 on May 26.
However, since then the price has dropped. Despite the decline, CAKE confirmed the channel’s previous resistance line as support (green icon). This line also coincides with the 0.5 fib retracement support at $ 18.75.
Despite the renewed test movement in the uptrend, the technical indicators are falling in the daily timeframe. MACD and RSI are both bearish, and the latter is below 50.
CAKE / USDT daily chart | Source: TradingView
The six-hour short-term chart suggests a bullish comeback as both the MACD and RSI show bullish divergence.
However, there is also a short-term descending resistance line that coincides with the 0.618 fib retracement resistance at $ 23.50.
As the daily timeframe indicator is falling, the trend cannot be considered bullish until CAKE manages to regain that line / level.
CAKE / USDT 6-hour chart | Source: TradingView
- CAKE erupted over a rising parallel channel.
- It is moving along a short term decreasing resistance line.
CTK has fallen along with a descending resistance level since April 6th. This resulted in a low of $ 0.75 on June 22nd. However, CTK began an uptrend thereafter and broke from $ 3.08 on August 25th.
Although CTK initially climbed above the 0.618 fib retracement resistance, it was unable to sustain its uptrend. On the contrary, the price made a double high (red symbols) and fell almost immediately afterwards.
It is currently trying to find support above the $ 1.75 zone.
Technical indicators in the daily timeframe are falling. MACD and RSI are both bearish, and the latter is below 50.
Daily chart of CTK / USDT | Source: TradingView
While the daily timeframe indicators are bearish, the six hour chart is bullish.
It shows a descending canal that often contains corrective structures.
Additionally, both the RSI and MACD created bullish divergences right on the channel’s support line.
Moving above the resistance line of the channel is therefore likely. The resistance line also coincides with the 0.618 fib retracement resistance at $ 2.72.
CTK / USDT 6-hour chart | Source: TradingView
- CTK has broken out above the descending resistance line.
- There is support and resistance at $ 1.75 and $ 2.70, respectively.
You can see the prices for BNB, CAKE, CTK here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto