Binance Coin Price Analysis: BNB/USDT Maintains Decent Bullish Momentum after Breakout from Wedge Pattern

  • The BNB/USDT bulls extend to the north, following the breach of an ascending wedge pattern.
  • Binance is moving ever closer to its Decentralized Exchange (DEX) going live.

Recent Price Behavior

The Binance Coin bulls have made a strong breakout to the upside from the confinements of a wedge pattern formation. BNB/USDT has made some big advances to the north, having jumped around 50% in the past eleven sessions. The price has moved up to its highest level seen since 14th November 2018, when the market was in a heavy downtrend. Keeping in mind this current upside path, BNB isn’t too far off recovering the drop seen in November. The pre-fall levels were up around the heights of $10.00.

As touched upon above, BNB/USDT was moving within an ascending narrowing wedge formation. This has contained the price since early December; it was in play for nine weeks before the bulls managed to force the break. The recent push higher was exacerbated by the upper trend line, which was in proximity to 27th January high print being taken out. This was attractive for further buyers to get involved, given how long the price had be restricted. There is without a doubt some fundamental excitement around the Binance organization assisting with the current pump.

Binance DEX Coming Soon

The Binance CEO Changpeng Zhao was recently speaking in an ‘ask me anything’ session. It appears that Binance Coin may very soon be moving closer to a migration away from the Ethereum network. In the commentary from CZ, he suggested that the testnet launch is coming soon for the organization. He also touched upon his plan for spinning off a decentralized exchange (DEX).

Specifically speaking on the coming DEX, CZ said, “There will be a listing fee on the DEX. I actually deliberately want to set that a little bit high. Just so we reduce the number of spam or scam projects. And there’s also a voting process by the validators to be listed on the DEX. So there’s a fee, I think the fee will be probably close to $100K US, so we’ll see. But the fee is adjustable over time, it’s quite easy to change”.

CZ has also detailed that a nominal number of validator nodes will be leveraged, as this will be done to increase the speed of the platform. The Binance DEX is already powerful enough to facilitate the sheer volume of transactions that are made on Binance.com. In terms of scale, this can also be modified dynamically if need be.

Technical Review – BNB/USDT

BNB/USDT daily chart.

Given the most recent technical structure breakout, eyes are on for a return up to the pre-November fall levels. The big psychological $10.00 mark will be one in the near-term for the market bulls to tackle. There isn’t too much in the way of resistance until these heights. In terms of support, the broken-down wedge pattern would be sought initially. This would complete a breakout and retest the upper trend line is seen tracking around $7.30-50 area. If this fails to hold, then a former acting supply zone is seen tracking from around $7.20-$6.90.

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.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.

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