Binance Coin (BNB), the native token of Binance exchange, has overtaken Stellar Lumens (XLM) to become the eight largest cryptocurrency by market capitalization.
This has happened after a prolonged outperformance by BNB and a prolonged underperformance by XLM.
BNB is the best performing top cryptocurrency over the past 30 days while XLM is among the worst performing.
Data from Messari shows BNB appreciating 79.59% over the past 30 days while XLM appreciated 3.74% over this timeframe.
While many top cryptocurrencies increased over the past month, the weekly chart for XLM shows price consolidating over this period.
Multiple Doji candles were formed on the weekly chart. A Doji candle is a candle where the open and the close are around the same point and typically reflects uncertainty from traders.
After a significant drop which took place last Sunday that resulted in XLM failing to overcome a significant resistance level, the price has mostly been consolidating for the rest of the week.
This increases the likelihood that price will follow up with another bearish drop that brings it below the resistance level at $0.08 which lies just below current price.
The shorter-term 4-hour chart shows the consolidation of this week mostly taking place in a downward channel.
The downward channel formed after an initial bounce from support at $0.08 after Sunday’s drop.
Price briefly returned to $0.08 during the week but quickly bounced with traders rejecting valuations close to this level.
The continued trading within the downward channel increases the likelihood that the next significant move will be one to the downside that will test the $0.08 level.
BNB’s price action on the longer-term timeframe has been setting up far more bullish.
The weekly candle is currently trading close to the weekly high and will likely close near the high.
This weeks price action has resulted in price both passing a weekly resistance level and also passing the former high.
A bearish divergence is forming on the daily chart.
A bearish divergence is a typical trend reversal pattern that takes place when the price forms higher highs and the RSI forms lower highs.
This shows price continuing to increase despite buying pressure falling.
The chances of a reversal given this pattern are small however given the bullish pattern forming on the longer term weekly chart.
Higher highs and higher lows are also forming, resulting in a bullish market structure.
- BNB overtakes XLM to become the eighth largest cryptocurrency by market cap.
- BNB is the top performer over the past 30 days while XLM is among the worst performers.
- BNB is forming an extremely bullish pattern on the weekly timeframe which makes the chances of a reversal smaller.
- XLM has been forming multiple Doji candles on the weekly indicating uncertainty from traders.
Binance Coin Versus Stellar Lumens – BNB Overtakes XLM to Become Eighth Largest Cryptocurrency was originally found on Cryptocurrency News | Blockchain News | Bitcoin News | blokt.com.