With Bitcoin and the vast majority of altcoins in the red for the week things are not looking good for the crypto market. That said, both $BNB and $TRX have had the strength to remain in the green up to now. Will this continue, or are they about to follow the rest of crypto to lower levels?
M topping pattern confirms for $BNB
Source: TradingView
An M pattern top has formed for the $BNB price and it looks like this has been confirmed. This would send the price down to the $841 horizontal support level should the measured move play out.
While the Stochastic RSI indicators are at the bottom and ready to turn back up again, signalling upside price momentum, the RSI indicator has dipped below the 51.00 level where it has found good support previously.
Big dip down to test support structure for $BNB?
Source: TradingView
The weekly view for $BNB illustrates how the price probably got ahead of itself. With no decent price structure above $750, the price perhaps needs to come back down to test this level. In fact, coming all the way down to the very strong $676 horizontal area is a pretty good bet, given that even this level has not been tested as support yet.
The Stochastic RSI indicators in the weekly time frame show that they have a long way still to go in order to come back to the bottom. This would also corroborate with a big downside reversal still to come.
A series of lower highs for $TRX
Source: TradingView
Since making a local high at $0.37 the $TRX price has been steadily turning over. A series of lower highs do not look as though they will be threatened by the bulls – at least as this current market goes.
The price looks as though it might fall back under the $0.32 horizontal support level. If it does so, it can go to the $0.30 band of support which provides a critical market structure level. The Stochastic RSI indicators are also falling which would tend to agree with a dip in the price action.
$TRX retests bull market parabola
Source: TradingView
When viewing the $TRX price in the weekly time frame it can be observed that just like $BTC, $TRX has been following a parabolic curve since the bull market began. Having been drawn back to this curve for a retest, it will be important that the price increases strongly from here or it will face the possibility of falling through it – potentially into a bear market.
Much like what has happened with the $BNB price, the $TRX price has left most of its strong price structure a long way behind. Yes, it is currently sitting on a good level of support from the candle tops for the all-time high, but below this, if the $0.30 horizontal level fails, the parabola probably does as well.
One bright spot on the horizon for the $BNB price is the Stochastic RSI, whose indicators have reached bottom and could turn back up on Monday.
Both $BNB and $TRX are either at a very critical stage in their bull market developments, or they are preparing to descend into what could be big downside reversals, which could even turn into bear markets. Investors and traders watch these two carefully.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.