Crypto Exchange Tokens Correct Amidst Market Dip, but Resilience Prevails

Amidst the recent market downturn, the crypto market is observing a correction phase. Post the halving events, Bitcoin has experienced a surge in its value during the previous three cycles. However, this cycle seems uncertain as Bitcoin struggles below $70,000, battling against sellers who aim to push the price below $60,000. The weakness of Bitcoin has impacted altcoins, including exchange tokens like Binance Coin (BNB) and Kucoin's KCS, which have faced declines of 5% and 20%, respectively, over the past week. This article delves into the current status of exchange tokens, analyzing their performance and evaluating the potential impact of the ongoing correction on the sector.

Cryptocurrency Exchange Tokens Witness Correction amid Broader Market Weakness

Binance Coin (BNB) Consolidates in Range

BNB has been hovering within a narrow range for over a month, fluctuating between $540 and $610. The token's latest resistance point sits just below its previous all-time high. Buyers have been defending the price at the level of the bullish institutional bias (9/18 EMA):

(Image: Binance Coin (BNB) price against the US dollar (3D))

If BTC stabilizes and holds above $60,000, BNB could capitalize on the momentum and resume its upward trend. To continue the bullish momentum, it must maintain its recent low of $496 and close above the previous peak of $645. Such a close could enable BNB to surpass its previous ATH.

Conversely, if the price falls below the 9 and 18 moving averages and loses support at $480, a pullback to $420 remains possible. As long as the price continues to form higher lows and highs, the probability favors a further increase.

The RSI has been declining for several weeks, but the momentum remains overall bullish. Buyers retain control of the momentum in this time frame.

BNB Strengthens Against Bitcoin in Downturn

The BNB/BTC pair measures the strength of Binance's native token against the king of cryptocurrencies. Typically, when BTC falls, it drags altcoins down with it. This remains true for the majority of altcoins that have experienced a significant decline, but BNB remains strong as evidenced by the BNB/BTC pair:

(Image: Binance Coin (BNB) price against Bitcoin (3D))

The BNB/BTC pair has managed to regain momentum with higher lows and highs on the other side of the downtrend line. Additionally, buyers have stepped in at the level of the bullishly aligned 9 and 18 moving averages and at the support level of 0.0083 BTC. It needs to break through the recent high to continue the momentum with higher lows and highs.

The RSI is also bullish; buyers have control of the momentum. To continue the bullish momentum, it will need to close above 71.

Coinbase (COIN) Rejected at $270 Resistance

Coinbase has been on an uptrend for several months, but it has struggled to break through the resistance at $270. The consolidation below the resistance continues, and buyers could step in at the bullish institutional bias and the support at $210:

(Image: Coinbase price against the US dollar (3D))

If the price bounces, a return to the resistance at $270 is possible. As the primary trend is bullish (higher lows and highs over several months), a breakout of $283.5 is entirely possible. In such a scenario, the price could rally to the next resistance level at $340. On the other hand, if the price slips below $210, the next significant support lies at $160. Seeing COIN resilient is encouraging for the future. In the previous cycle, the Coinbase's top marked the end of the cycle for cryptocurrencies.

The RSI has been heading up for over a year now, but it has failed to make higher highs. It must avoid dropping below the recent low of 46, as this would validate a bearish divergence.

OKB Holds Support at $53

Some altcoins are more resilient than others in the face of this Bitcoin decline, and this is particularly the case with OKB. The OKB price is maintaining its overall momentum with higher lows and highs. Moreover, buyers continue to defend the support at $53. However, to initiate a new leg up, it needs to break out of the resistance at $64:

(Image: OKB price against the US dollar (3D))

If the resistance gives way, the price could rally to the 1.618 and 2 Fibonacci extensions levels. To continue the bullish momentum, it will need to close above the recent high at $74. On the contrary, if the $64 resistance holds, it will need to defend the support at $53 once more.

The RSI is moving below the downtrend line. The momentum indicator should once again start making higher lows and highs above the trendline for buyers to regain the momentum advantage.

KCS Drops to Support at $8.5

KCS is significantly weaker than its exchange token peers. In fact, KCS has recorded a decline of over 50% from its high around $16. The SEC's attack on the centralized exchange has weakened KCS's price:

(Image: KCS price against the US dollar (3D))

The price failed to hold the support at $10.5 and has fallen to the support at $8.5. Here, buyers have the opportunity to react. It will now need to break through the resistance at $10.5 to change the momentum. If the support at $8.5 gives way, the next support is at $6.5. The RSI has validated a bearish divergence; sellers have control of the momentum.

Exchange Tokens Show Resilience Despite Bitcoin Decline

Following Bitcoin's fall below $70,000, the exchange token sector has proven to be relatively robust. This is particularly true for Binance Coin (BNB), which remains optimistic against the dollar and continues to outperform the king of cryptocurrencies overall. Coinbase COIN is stuck at the resistance level of $270. However, a reaction could occur around the bullishly aligned 9 and 18 moving averages. Meanwhile, buyers are defending the $53 support on OKB. The buyers' objective is now to break the sellers at the $64 resistance. OKB remains optimistic against the dollar, and the odds are on its side for a new leg up once BTC finishes its decline.

KCS is the poor performer among exchange tokens. The KuCoin platform is being targeted by a legal proceeding in the United States, which creates fragility around KCS. The bulls need to react at the $8.5 support to prevent a further decline that could bring the price back to $6.5. Despite the decline, some altcoins manage to stand out. For example, Solana (SOL), Toncoin (TON), and Bitcoin Cash (BCH) are outperforming Bitcoin.