Binance Coin managed to trade above the 7-week moving average for over 6 months invalidating all the bearish signals along the way. Nonetheless, the latest sell signal given by the TD Sequential Indicator in the form of a green nine in mid-June could not be invalidated. Since then, BNB has corrected nearly 39 percent, breaking below the 7-week moving average for the first time since late December.
So far, the selling pressure behind this cryptocurrency has not been strong enough to take it down to the 30 or 50-week moving average. Additionally, last week a hammer candlestick pattern developed. This is a reversal candlestick formation that signals potential capitulation by sellers and a turnaround in the price direction.
A move above the 7-week moving average, based on the 1-week chart, could validate the outlook given by the hammer candlestick pattern and a break above the previous high of $39.60 will confirm that Binance Coin is poised to continue its bull rally and make higher highs.