Bullish momentum fades as BNB faces a 14% retreat

  • Binance Coin price mid-week breakout halts at $290.
  • Binance exchange releases its new oracle service to support applications on the BNB Chain.
  • Multiple sell signals could condemn Binance Coin price to a $14% retracement to $258.

Binance Coin price is at a critical juncture, with the supply area at $290 likely to determine the direction it may take going forward. Investors have their eyes fixated on $300, as outlined in this article on Wednesday,

BNB had tagged this price level in its previous breakout, but the native exchange token dropped like dead weight due to a $100 million blockchain bridge hack. A recovery ensued soon after, rewarding patient investors. However, the same gains seem to be in jeopardy, with BNB staring at a 14% trend correction.

The Binance oracle service is live

On Wednesday, the world’s largest exchange by volume, Binance, launched an oracle service. According to the Malta-based trading platform, the news service will benefit over 1,400 applications currently running on the BNB Chain.

Oracles refer to third-party services that pull external data to a blockchain. They are essential for accessing accurate data for DeFi (decentralized finance) applications and other related blockchain-based products. The data can be different, including pricing information.

“Binance Oracle will emerge as a significant contributor to Web3 by offering a stable, reliable and efficient oracle network with comprehensive accuracy and accessibility features,” Gwendolyn Regina, the investment director at BNB Chain, said.

Binance Coin price could offer profitable short positions

Binance Coin price has been dancing between a range illustrated by two gray bands on its eight-hour chart. The upper range limit at $300 has been tested three times over the last ten weeks. Interestingly, bears also respected support established around $250, leaving BNB rangebound.

BNB/USD eight-hour chart

Now Binance Coin appears to have exhausted its mid-week bullish breakout at $290, a move that is raising questions as to whether it will regain momentum to tag $300.

A retracement is already underway below $290, and Binance Coin price will likely stretch the bearish leg toward the support at $258 – a target equal to the distance between the upper and lower limits of the range channel. A move such as this could shrink its chances of climbing to $300. The OBV (On Balance Volume) indicator reveals that sellers are ready to take control amid a spike in negative volume.

BNB/USD four-hour chart

BNB/USD four-hour chart

The TD Sequential indicator adds credence to the outlined bearish outlook. This indicator presented a green nine candle, implying that buyers gradually lose their grip on the price as sellers prepare to take the reins.

Short positions are recommended after the sell signal appears, but traders must confirm that the high of candles six and seven in the count are exceeded by the high of bars eight or seven. The last time (October 5) the TD Sequential indicator flashed a similar sell signal, Binance Coin price plunged 13.47% and tested support at $258.

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