Binance coin has been one of the best performing cryptocurrencies of the past one year. When you look at its performance in 2019 as well, it has surged ahead. It clearly indicates that due to the improving fundamentals of Binance cryptocurrency exchange, it is moving higher. The question is why it is not able to sustain at higher levels. Even though it has risen by a significant amount, it finds it difficult to sustain beyond $ 10. It has already tried once and fallen back. It seems like it is trying to sustain above those levels once again. We will today attempt to understand why it is finding it difficult to sustain above $ 10.
Why is Binance coin (BNB) not able to sustain at the higher levels?
Technical and psychological resistance:
One of the main reasons why it had fallen so significantly and in a matter of just a few days is because $ 10 is not only a technical resistance, but it is also a psychological resistance. With the relentless rally of the past one month as well as past one year, many people believed that after going up it would crash. That is why the buying simply vanished around those levels. Once it fell to $ 9.55, the buying once again resumed, and the volumes increased to around $ 100 million. It clearly indicates that at the lower levels, there is still an appetite for Binance coin (BNB). The same is not true at higher levels.
At the start of this year, it was trading around $ 6.19. Even when you take the price of Binance coin (BNB) today, it has increased by almost 66%. It indicates that it has had a one-way rally. Owing to this very reason, at some point in time there will be some selling. It seems like the sellers are not that confident about the levels of $ 10. Owing to this very reason, it is not able to easily sustain above that level.
Today, however, it is making another attempt to scale up above $ 10. So far, it has been able to sustain above the level of $ 10. Will it be able to do so in the future? Things are not looking that rosy. With the cryptocurrency markets in lackluster condition, Binance coin (BNB) might not find adequate support from the other cryptocurrencies. It might not have enough technical momentum to buck the trend and cross its resistance and sustain it. That is why, instead of investing at these levels, it is a good idea to supervise whether it can sustain above the resistance levels or not.