Binance Coin, Decred, Tezos Price Analysis: 22 August
The latest dip in Bitcoin’s price has knocked back the gains of many of the market’s altcoins. Binance Coin and Tezos were just some of the alts to note such corrections. However, these price drops do not point to any reversal in trend yet and should be treated as healthy corrections in a bull market. This was the case with Decred as it noted a pullback, despite significant interest in the coin after its price soared past its resistance.
Binance Coin [BNB]
Binance Coin climbed to a high of $23.90 from a low of $20.56 on 12 August. The Fibonacci Retracement indicated that the levels to watch out for were 0.786 at $23.21 and 0.618 at $22.64. These levels acted as support and resistance for the crypto over the past few days. At the time of writing, BNB’s price was at the 0.382 level at $21.84.
BNB was trading below its 100 EMA (pink), with it touching the 200 EMA (purple). Further, the Awesome Oscillator registered strengthening bearish momentum on the short-term charts. The support was found at $21.30, a level that acted as resistance and support multiple times in the past few months over the longer timeframe.
Binance’s announcement that Binance Coin is now available for staking with APY of 25% could spark a positive reaction in the market.
Tezos was struggling to reclaim its position as one of the top 10 cryptocurrencies in the market, at press time. Ranked 13th, XTZ has been moving relatively slowly on the charts, with XTZ having a market capitalization of $2.5 billion, a significant fall from its $3.2 billion market cap a few weeks ago.
The mouth of the Bollinger bands was widening as XTZ’s prices dropped further below its support at $3.6. The widening bands pointed to increasing price volatility.
The RSI failed to stay above 50 following the previous bounce from $3.6 to near $4. This showed that the move was only a bounce in the downtrend. At the time of writing, the RSI value stood at 39, showing bearishness.
Unless the RSI starts to form higher lows and XTZ manages to hold above its support at $3.286, an extended downtrend may be in store for the crypto-asset.
Over a longer time-frame, XTZ has been on an uptrend since March and the past week might prove to be just a dramatic correction before further upside.
Decred was ranked 60th with a market cap of $223.3 million. It had a daily trading volume of $19.1 million, which was nearly thrice the average volume over the past couple of weeks.
DCR found strong support in the $16.50-zone, before reaching a high at $19.90. Over a longer timeframe, the $19.50 zone has been important and it could prove to be important once again if DCR notes a pullback.
At the time of writing, DCR was noting huge gains and might go higher than $19.90. Further, the CMF showed capital influx into the market, with a value of +0.19. This indicated that buyers’ interest was present and the price rise was not inorganic.
The 50 EMA (white) stayed above the 100 EMA (pink), suggesting that DCR was bullish and has been so throughout August. We can also expect the EMAs to serve as support on pullbacks.
The next level with historic importance to the upside was the resistance at $22. As indicated, the $19.50 zone can act as support if indeed DCR faces a pullback. The next support was at $16.7.