Binance Coin was trading at a decent valuation above $500 when a sudden sell-off happened. El Salvador agreed to use Bitcoin as a legal tender on a day that was supposed to be the greatest gaining day for Bitcoin. However, much to our dismay, everything took a vast reversal as a huge chunk of cryptocurrencies on a broader scale were sold off within a few hours, hitting as low as 20% in intraday trades.
BNB was developed to make cryptocurrency the face of change in the financial markets. It is used to power multiple finance projects, from Binance Chain, Academy, Wallet, to Research Projects, to utilize the pros of blockchain in advance in the crypto market.
Binance Coin still has a market capitalization of $68 billion, but the selling pressure seems harder to stop. Since people are in a state of frenzy as the sell-off on September 07 wiped off months of gain they were holding, most profitable investors would be booking their profits rather than risking their unrealized gains.
BNB Finds Support Amid Sell-Off Pressure
BNB price was trading on a huge premium to its 200 days moving average, an important indicative line to predict the value proportion of an asset. Trading higher than 200 DMA indicates the asset to be trading on a premium involving a risk of booking profit and reducing the underlying value. On the other hand, trading below the 200 DMA line means the asset is available at a discount, and people are not interested in buying the asset at current.
As of now, Binance Coin has taken support from its 200 DMA line active at $382. BNB has taken support from the level on September 07 & 08, inducing a buying action close to the levels. Sell-off included liquidation of a larger volume of BNB coin, pushing the RSI levels to below the neutral zone of 40. To avoid getting trapped in the current price movement, one shouldn’t hold the BNB coin for more than a 10% discount.
