Key Takeaways
- Binance is celebrating its three-year anniversary with a new crypto debit card roll out
- Regardless, Binance's BNB token seems ready for a steep correction since it failed to break above a critical resistance barrier
Binance is rolling out its debit card in the EU and the UK as part of its three-year anniversary. Though anniversary fanfare puts Binance in the spotlight, BNB looks ready to drop based on trading metrics.
Binance Turns Three Years Old
Today marks three years since Binance launched its exchange. The platform started as a crypto-to-crypto trading platform, but quickly expanded as it gained popularity. Five months after going live, Binance became the world’s largest cryptocurrency by trading volume.
Binance now offers a wide range of financial products meant to meet the needs of all sorts of crypto investors. From its crypto derivatives futures exchange to its peer-to-peer trading platform, the firm has its hands in every part of the industry.
Now, Binance announced the official launch of its Binance Card in Europe and the United Kingdom to celebrate its anniversary. The crypto debit card will enable users to convert and spend Bitcoin, Binance Coin, Swipe, and Binance USD to fiat at more than 60 million merchants across 200 regions and territories worldwide.
“By providing a tangible way to transact, convert, and spend crypto for everyday use, we are furthering our mission of making crypto more accessible to the masses. Giving users the ability to convert and spend their crypto directly with merchants around the world, will make the crypto experience more seamless and applicable,” said Changpeng Zhao, CEO at Binance.
These developments demonstrate that Binance is at the forefront of the industry. As such, it is reasonable to assume that the price of the exchange’s native token, BNB, is ready to soar—but trading metrics say otherwise.
BNB Poised to Correct
Despite BNB’s impressive recovery after the March market meltdown, the exchange token entered a stagnation phase beginning in late April. Since then, BNB has predominantly traded between $15-support and $18-resistance.
BNB was recently able to close above the $18 overhead resistance level. Many traders put their money on BNB thinking the move signaled that the coin was ready to breakout. Instead, the cryptocurrency was rejected from the $18 level, pushing its price back into the $15-18 consolidation zone.
Now, the TD sequential indicator is currently presenting a sell signal on the 1-day chart, estimating more losses to come; the bearish formation developed in the form of a green nine candlestick. If validated, Binance Coin could retrace for one to four daily candlesticks or begin a new downward countdown.
Given the price history of the past three months, a spike in the selling pressure behind BNB could send it back to the $15 support level.
Based on the Fibonacci retracement indicator, however, Binance Coin could be held by the $16.8 support level in the event of a correction. Only a daily candlestick close below this crucial supply barrier will see BNB plunge towards $15.
It is worth mentioning that a green two candlestick trading above a preceding green one candle may have the ability to invalidate the bearish outlook. Under such circumstances, investors must watch out for a break of the 38.2% Fibonacci retracement level since it could lead to an upswing towards $22 or higher.