Binance Coin Price Analysis: BNB Continues to Storm Higher; Greater Breakout Eyed
- BNB/USDT has seen a decent return of bullish momentum, recovering some 25%.
- Fundamental developments surrounding the organization, Binance, continue to remain strong.
BNB Price Behavior
The Binance Coin has been on a decent grind to the north of late, as the bulls make up ground for a recovery. This comes after BNB/USDT was enjoying a strong run higher, which was initially seen from 8th December 2018, up until 9th January 2019. The bears on 10th January forced an aggressive move to the downside, breaking key areas of support. A double-digit drop of some 15% was seen, smashing out from an ascending channel formation.
Since the above-detailed breach from the supporting channel, the price tested it on several occasions, attempting to break back above. The bulls have continued to be persistent and managed to gain around 25%, following the fall. At the time of writing, BNB/USDT is trading just underneath the channel, attempting to breakdown near-term supply. This area of sellers can be seen tracking from $6.20 up to $6.90. The price has not traded above this mentioned zone since 19th November.
There has been much in the way of developments surrounding Binance, the world’s largest cryptocurrency exchange by market volume. Keeping in mind the strong fundamental direction from the organization, this is certainly something that is maintaining the market bulls’ excitement.
BNB Market Cap Growth
The impressive detailed recovery of late, which has seen BNB outperforming in comparison to several of its peers, has resulted in solid market cap growth. Therefore, BNB’s ranking, in terms of top cryptocurrencies by market cap, has jumped. The most recent move sees the token leap over IOTA, to take the 12th spot from 13th. BNB’s market cap at the time of writing is seen at $882 million, versus IOTA’s $802 million.
Outflows from Ethereum Network into Binance Chain
Following the wrap up of Binance Blockchain Week in Singapore, the CEO and Founder, CZ was recently speaking in an interview. He noted that there will be several larger Ethereum-based ERC20 tokens, that will switch away from the Ethereum network, once Binance Chain launches. It is set to launch in the early part of this year, which will be along with Binance DEX, a decentralized exchange.
CZ detailed that Binance Chain will be significant faster and more cost efficient. It will facilitate tokens that are strictly currencies that do not utilize the smart contract features that the Ethereum network offers.
Technical Review – BNB/USDT
Another wave of buying pressure may soon be on its way should the bulls manage to break above the mentioned supply, $6.20-6.90. At the time of writing, BNB/USDT can be seen trading at the 9th January high. This was right before the big double-digit drop.
A push above this area, could see a very fast move back towards the $8.00 territory. There isn’t much in the way of major barriers, prior to the noted target. Further north, eyes will be on a return to the pre-November fall levels, around $10.00.
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.