The crypto industry has grown from a recent tweet published by Poly Network, which identified a $ 600 million theft from its system. The decentralized financial platform, which works on the Binance Smart Chain, Ethereum, and Polygon, later added that the amount of money hacked is one of the largest in DeFi history.
As the crypto community flocked to condemn the attack, BNB’s value on the charts was unaffected by the disturbing news. In fact, the Alt rebounded alongside its rivals, even closing above a major resistance. At the time of writing, BNB was trading at $ 388.2, up 10% over the past 24 hours.
BNB 4 hour chart
Since the end of July, the BNB has made higher highs and higher lows and rose steadily in the charts. An upper and lower trend line was drawn on the 4-hour chart, creating an ascending channel.
The latest jump also pushed prices above $ 380 – a region that initially capped BNB profits in early June. Now that the NBB has traded above this cap, its next target was its swing high of Jan.
However, there have been several red flags in the market. For example, the BNB was trading on the upper trend line – an area where traders usually exit their positions according to the pattern. Second, the price was trading near its weekly 20-SMA (not shown) which was moving bearishly. When these factors come into play, the NBB could aim for an 8.5% decline towards its 20 SMA (red) and $ 360 support. A decline below this level would make the BNB susceptible to a prolonged sell-off.
The Relative Strength Index peaked in the overbought area on the daily, 4-hour and hourly charts. These conditions usually act as a sell signal before the next uptrend. The more price-sensitive stochastic RSI was already on the cusp of a bearish crossover. On the flip side, the Awesome Oscillator made a higher high, trading at its highest level in over a month. A bullish result would be confirmed in the event of a closing price above the $ 400 mark.
With the BNB trading on the upper trend line of its upward channel, it was expected that the Alt would experience some selling pressure. The RSI peaked in three time frames and called for stabilization. To refute such a thesis, the cops would have to aim for a surge above the psychological $ 400 mark.