Binance Coin: stay alertedThe run of deposits from banks impact the ongoing surge in the crypto prices. Major coins gained the most, due to easiness of both funds deposits and possibility for transfers to other wallets. That was the winning combination during the previous week. BNB is certainly one of the coins with widely available infrastructure for both above-mentioned targets. Although the $300 resistance line had been tested at the start of the previous week, the price easily went to the higher grounds, ending the week modestly below $350 resistance. Based on the charts, the move is still not over, as it will need a few more days for existing funds in the banking system to be extracted and moved to the crypto market. This should be taken with a precaution, as it poses significant risk for the market`s move to the down side, when all speculative positions enter into profit-taking season.
With the latest push to the upside, RSI went to the overbought side of the market. Usually it will be an indication that a short reversal is ahead, however, at this moment, it might take some time for such a move. The reason is that we still don’t know how much more money is pending to be transferred from banks to the crypto market. MA50 continued with its divergence from MA200, following the Golden cross that occurred a few weeks ago.
Regardless of the positive developments during the previous week, investors and traders precaution is still necessary. This comes from the fact that too much funds were transferred in the crypto market within too short a period of time. The nature of these transfers is such that these funds are not there to stay on the crypto market. Withdrawals might start anytime, and with it, a drop in prices. BNB will continue to test $350 resistance, and in case that the market exhausted itself, then the price will enter into a short reversal, at least to $320. Whether the price might go higher from $350 it will depend solely on new deposits entering the market.
