Binance Coin (BNB) fights for $250: Here’s what to expect
- Binance Coin pushed up as the crypto market turned green.
- BNB gained around 22% on the day as its price broke above its downtrend.
- The cryptocurrency is currently fighting for the 50% Fib retracement level.
Binance Coin (BNB) has, after spending a week in retracement mode, finally made a move towards the upside. So, what caused BNB to surge over 20% on the day, and should you consider investing in BNB now?
Fundamental analysis: Binance Smart Chain performance pushes BNB up
With Binance Smart Chain (BSC) becoming increasingly popular as a DeFi-hosting platform in recent weeks, BNB (its underlying token) has experienced several massive jumps in price. Since any performance of the BSC is correlated with how people perceive and value BNB, it’s safe to say that Binance Coin’s fundamentals are improving every single day.
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Changpeng Zhao, the CEO of Binance, posted a tweet that shows BSC’s transaction volume. He pointed out that BSC is currently sustaining 2x the daily transaction volume of Ethereum. On the other hand, he stated that the BNB token is not even close to being as valued as Ether:
However, a good counterpoint to CZ’s statement was made, which said that one of the reasons BNB isn’t as valued is its availability. Binance Coin is only available on the Binance exchange, while Ether is available on every major exchange.
BNB posted week-over-week losses of 7.35%, outperforming both BTC‘s week-over-week loss of 9.08% and ETH‘s 12.51% loss. Binance Coin is currently the fourth-largest cryptocurrency by market cap, boasting a value of $37.88 billion.
At the time of writing, BNB is trading for $245, which represents a price increase of 206.59% when compared to the previous month’s value.
BNB/USD technical analysis: BNB gains 22% on the day but fails to break the 50% Fib retracement level
Binance Coin has, after reaching its all-time high of $368.29, entered a retracement mode that lasted for over a week. After nine days, this retracement might be broken after BNB managed to find strong support on the 21-hour EMA. However, this might just be enough to propel its price back to its recent highs.
The other reason for BNB’s current push was the overall cryptocurrency market performance, which further invigorated BNB bulls. However, BNB’s 22% daily gain might be coming to an end as the cryptocurrency couldn’t pass the 50% Fib retracement level of $246.12.
While Binance Coin’s overall outlook would look extremely bullish only under the condition that the cryptocurrency closes the daily candle above the 50% Fib retracement level, it can still remain slightly bullish as long as is stays above the previous downtrend.
BNB’s RSI on the daily time-frame has stopped its descending move and started moving towards the overbought territory. Its current value is sitting at 60.67.
Zooming in to the hourly time-frame, we can see that BNB created a descending trend through which it moved ever since 24 February. However, today’s push up managed to break above the descending resistance line, and BNB rushed towards $250. While BNB managed to establish its presence above the descending line, it failed to pass the $250 mark.
BNB is currently pulling back after failing to break the $250 level, with the 21-hour, 50-hour, and the zone around $225 being its first support levels.