Binance Coin (BNB) down 12.1 percent
Libra coin may be available at Binance upon launch in 2020
The exit of US clients will shave Binance’s trading volumes. To counter that, they may end up listing Facebook’s Libra upon roll out. Talks are in a preliminary stage. Meanwhile, BNB is down 12.1 percent from last week’s close.
Binance Coin Price Analysis
It may be the largest exchange by trading volumes, but that title is under threat. With the SEC firm on their interpretation of what a security is, the exit of US clients will negatively impact Binance trading volumes.
One thing is highly likely, like Huobi, Binance Coin (BNB) would not be available for trading in the US. It’s only a matter of months before that becomes a reality. The impact could be moving for BNB holders with the only path of least resistance being southwards.
On the chart, fractures are beginning to form as BNB prices stagnate below $40. Their plans of listing Facebook’s Libra could reinvigorate interest in the exchange token, temporarily buoying prices. At least that is a business decision Binance as a for-profit firm won’t want to miss on.
According to Binance strategy officer Gin Chao, in an interview with the Finance Magnates, during the FinTech Junction Conference in Tel Aviv, their discussion with the social media giant is at a preliminary stage:
“We have had an official dialogue with Facebook. With regarding listings specifically, right now they are going to be on a so-called “private chain.” So that means they won’t be looking for external liquidity. However, from what we understand the potential to be, that would lead [Facebook] to wanting a secondary market [for Libra coin]. Currencies benefit from a secondary market, so it would be in their best interest to want to be listed.”
Price wise, BNB is trading 12.1 percent lower from last week’s close at the time of writing. Under pressure, bears could step up in days ahead. Visibly, bull momentum is waning after six months of impressive gains. Thus far, it is imperative that bulls maintain BNB prices above the main support line at $30.
Ideally, any rally above $43 or June 2019 peaks could see prices more than double. However, any liquidation with high trading volumes surpassing those of June 14 could confirm the bearish divergence pattern. After that, the first stop could be $25 and later $17 as laid out in previous BNB/USD trade plan.
With flimsy bulls and shrinking participation, there is a bearish divergence. All the is needed is a surge above $43 or a drop below $30 complete with high trading volumes exceeding 4.9 million of June 14 canceling or affirming bulls of the first half of the year.
Chart courtesy of Trading View. Image Courtesy of Shutterstock
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