Binance Coin (BNB) Maintains Bullish Bias in the Era of IEOs
Binance Coin (BNB) advanced on Thursday, once again becoming the growth leader in a market that has struggled to regain momentum following an early-week flash crash. While there was no immediate catalyst for the impressive price gain, BNB is benefiting from a virtuous news cycle tied to initial exchange offerings (IEOs), the launch of a decentralized exchange and the inclusion of a new margin trading service that is currently in beta mode.
BNB Price Update
The BNB price reached a high of $32.12 on Tuesday, according to CoinMarketCap. At last check, it was trading at $31.86, having gained 5.2%.
Unlike its large-cap peers, BNB has fulled retraced the sharp drop that began late Monday. The massive correction eroded more than $20 billion in crypto market capitalization. Read more here.
Week-over-week, BNB is down more than 6%. Its major peers have fallen between 9% and 20% over the same stretch.
At current values, Binance Coin has a total market value of just under $4.5 billion. Its well ahead of Bitcoin SV (BSV) but still more than $1.3 billion shy of EOS for sixth spot on the market-cap index.
What’s Stopping Binance Coin?
So, what’s stopping Binance Coin from bigger gains? At this stage, nothing.
The seventh-largest cryptocurrency has gained a staggering 72% over the past three weeks. That figure excludes the all-time high of $35.50 on May 30. At those levels, BNB’s market cap was worth roughly $5 billion.
As far as the large-caps go, BNB is the top-performing cryptocurrency of 2019, having gained more than 410% year-to-date.
Despite entering a sideways trading range toward the end of May, BNB is maintaining a bullish pennant pattern, which makes another parabolic move likely. As Hacked recently noted, another breakout of 90% or more is possible. That would give the BNB bulls an initial target of around $60 compared with the previous all-time high.
Hacked analyst Ken Chigbo says:
“All targets north of the all-time-high are the total unknown, but if the crucial current support areas continue to hold, then further moves north are likely.”
As far as fundamental development go, Binance recently launched a margin trading feature for several crypto pairs with USDT and BTC as the quote currency. The maximum leverage offered is 2x. Margin trading is a highly risky but enormously popular trading feature.
The growth of IEOs has also made Binance the go-to platform for investors looking to purchase vetted cryptocurrency projects. In order to participate in these keenly awaited IEOs, investors need to purchase BNB first.
IEO token sales are facilitated on Binance Launchpad. To date, the following sales have raised in excess of $37 million: BitTorrent, Matic Network, Celer Network and Fetch AI.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Charts via CoinMarketCap.