Analysis of some altcoin projects for the next few days attracted attention. Especially for the altcoins traded on the crypto money exchange Binance, expert opinions came to the fore. Here are the details…
What’s next for Binance’s native altcoin?
Binance Coin (BNB), the native token of the Binance exchange, has experienced a period of sideways movement recently. Although BNB’s price hit a weekly high of $307 on June 4, it met resistance and is currently trading at $246.2. This article presents an analysis of the recent price action, discusses the potential reasons behind BNB’s performance, and explores the future prospects of the coin.
The recent drop in the price of BNB can be attributed to several factors. First, overall market sentiment has been impacted by a broader correction in the cryptocurrency market. Many altcoins, including BNB, fell in value as investors took profits and adjusted their portfolios. In addition, concerns about regulatory developments and market uncertainties also increased the selling pressure on BNB.
Despite the bulls’ efforts to regain control, the bears pose a significant threat to BNB’s price stability. The key resistance level at $308 has become a battleground for market participants. If the bears manage to push this level down, it could trigger more selling and potentially bring the price down. Technical indicators are drawing a cautious chart for BNB. The Moving Average Convergence Divergence (MACD) indicator displays a bearish trend, indicating that the selling pressure will continue in the near term. Market participants will be watching closely for price movements around the critical resistance level of $308.
Big losses in APE, EOS and FLOW
Meanwhile, ApeCoin, EOS and Flow emerged as the biggest losers. DeFi tokens have taken significant damage over the past seven days, losing their value from 27 percent to 30 percent. At the time of this writing, ApeCoin price is recovering after hitting an all-time low of $2,066 this week. The last line of defense for the altcoin was $2,862, which it lost a week before June, resulting in a one-week drop of 26 percent. EOS has also hit its lowest level in nearly five and a half years after falling more than 30 percent in the past seven days. The altcoin is still painted red on the charts and is trading at $0.6271. When it comes to the DeFi token, the bearish trend is getting stronger and could lead to further declines.
Parallel to ApeCoin, Flow is also observing an all-time low of $0.4600 after falling by about 27% on the charts last week. The altcoin has already been bearish since mid-April after losing the Exponential Moving Averages (EMAs). All cryptocurrencies still observe a bearish trend in the market and further declines can be expected if broader market conditions worsen going forward. The ongoing contention between the SEC and Coinbase and Binance could adversely affect price movements in the near future if developments do not favor the exchanges.
Cosmos could drop 15 percent
Cosmos (ATOM) price was brutally hit when the US Securities and Exchange Commission (SEC) labeled the altcoin a security among nine other tokens in the Binance Exchange lawsuit. Like other altcoins in this space, ATOM’s market cap also fell as investors panicked. Despite the bullish effort to regain lost ground, more needs to be done in terms of momentum before the target is met. The Cosmos (ATOM) price has dropped 30 percent since June 7, when the SEC filed a lawsuit against Binance citing unregistered securities trading. After ATOM was listed among poorly traded assets, panic selling began and listed tokens plummeted.
This came at a time when the memories are still fresh when the regulator attack on the FTX exchange in November 2022 saw the platform crash with user funds locked up. The bulls climbed 25 percent to bail ATOM from the June 10 low of $7.01 while Cosmos price remains below as it continues to consolidate within a descending bearish channel. However, the June 10 candlestick temporarily breaking below the bottom of the technical pattern is probably an exhaustion bar that marks the end of the downtrend.
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