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Binance Coin Stuck At $600 But Ascending Triangle Apex Is Close With $650 the Resistance

Last Updated May 28, 2024 1:59 PM
Nikola Lazic
Last Updated May 28, 2024 1:59 PM

Key Takeaways

  • Binance’s web traffic in Russia dropped 30% after a strategic withdrawal from the exchange at the beginning of this year.
  • Russian crypto activity has surged; local exchanges are also gaining dominance.
  • BNB is still moving sideways, but a breakout is near.

In early 2024, Binance saw its web traffic in Russia plummet 30% following a strategic withdrawal. The shift in market dynamics has coincided with vigorous activity in the cryptocurrency sector within Russia. 

These developments could be reflected in the price movements of Binance’s currency, BNB, which showed significant volatility, indicating ongoing adjustments in the market’s response to these changes. 

Since its peak of nearly $650 in mid-March, BNB has been trading sideways, but it has formed an ascending channel. As it approaches the triangle’s apex, we will soon see a breakout, but towards which side? 

Binance Losses 30% Web Traffic In Russia 

The Russian cryptocurrency market is experiencing a significant transformation following Binance’s departure in early 2024. This exit triggered a mass migration of users seeking new platforms for their digital assets, sparking a competitive scramble among local exchanges.

According to a recent report  from the Bank of Russia, this upheaval has proven advantageous for domestic platforms, now vying for dominance in the vast Russian territory. Despite Binance’s reduced market presence—its web traffic share dropped from 47% to 16% over a quarter—the overall crypto activity in Russia has not only persisted but intensified.

A 16.4% increase in web traffic across various crypto services coincides with rising crypto valuations, indicating a heightened interest in digital assets among Russians.

BNB Price Analysis 

After hitting a peak of $640 on March 16, the price of BNB declined to a low of $505 on March 20, marking its lowest point since then and subsequently forming a series of higher lows. The most recent was on May 1, when the price dropped to $540 from an April 26 high of $620, representing horizontal resistance.

BNB
BNBUSD | Credit: Nikola Lazic/Tradingview

This pattern of forming an ascending triangle from the March peak suggests that BNB has been in a consolidation phase, possibly preparing to continue its broader uptrend that started in October of the previous year.

According to Elliott’s wave theory, this is likely part of its fourth wave in a five-wave upward sequence.

However, two scenarios arise. The ascending triangle’s price movements could be counted as a five-wave ABCDE pattern typical of a fourth wave. Moreover, the rise since May 1 exhibits a five-wave structure, suggesting it could be a sub-wave of a new uptrend.

But, instead of advancing higher, BNB was again stopped at $620 and is now struggling to maintain above $600. This is why, in a bearish scenario, we could see a further drop to $500 before this wave 4 ends. 

Should a breakout occur above the $620 resistance, a bullish scenario will be a primary one. This scenario would set the stage for the Binance coin to reach a new all-time high, targeting $700. 

Conversely, if the price fails to overcome the $620 resistance and turns sharply downward, a breakdown below the ascending trendline at $550 becomes more probable, with BNB potentially falling below $500.

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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