Binance Coin skyrockets to a new all-time high: What caused the price increase?
- Binance Coin posts a new all-time high at $175.915.
- The cryptocurrency's price skyrocketed on massive exchange inflows.
- BNB's strongest support level is the zone between $148 and $150.
Binance Coin’s (BNB) price skyrocketed as high as $175.915 on massive exchange inflows. What will happen next, and should you buy some BNB now?
Fundamental analysis: massive money inflows on the Binance exchange bring BNB’s price up
Binance Coin is the native cryptocurrency of the world’s largest exchange – Binance. It is used to reduce trading fees on the platform, with its price increasing when there are more traders on the exchange. In this case, massive retail money inflows brought BNB above $170 and pushed it into price discovery territory.
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Changpeng Zhao, the CEO and founder of Binance, posted a tweet reminiscing about Binance Coin’s inception:
BNB posted week-over-week gains of 22.36%, outperforming both BTC‘s week-over-week gains of 14.47% and ETH‘s 4.14% gain. Binance Coin is currently the seventh-largest cryptocurrency by market cap, boasting a value of $24.60 billion.
At the time of writing, BNB is trading for $171.15, which represents a price increase of 68.49% when compared to the previous month’s value.
BNB/USD technical analysis: BNB skyrocketing after passing $150
Binance Coin has been in an uptrend for quite a while, with each bull cycle speeding up its price gains. BNB has, after taking some time to establish its presence around the $130 zone, pushed past the $150 resistance and entered price discovery mode.
With the 21-day and 50-day EMAs so far away from the current price, BNB will have to rely on its Fib retracement levels as well as the zone between $148 and $150 to be their main support levels.
BNB’s RSI on the daily time-frame has been deep in the overbought territory, with its current value sitting at 86.78.
Zooming in to the hourly time-frame, we can see BNB’s volume skyrocketing alongside its price. BNB first pushed past the $148 and $150 levels and then established its presence there before continuing its push.
Binance Coin is still in price discovery mode, and the current all-time high of $175.9514 might not be the final one. Traders will have to pay attention to the BNB volume, as well as Binance exchange inflows and outflows in order to determine the true BNB top.
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