The Binance Coin (BNB), even at spot rates, has over-performed, exceeding everyone’s expectations. Binance Coin Recovers Above $250 and Adds 30% Against BTC. Technically, traders expected the coin to be capped below $100.
However, based on BNB price predictions, Binance Coin could revisit its May highs of $650.
What Makes The Binance Coin Price Appreciate?
The rise of DeFi and NFTs coinciding with the Binance Smart Chain (BSC) launch, Binance’s acquisition efforts, and their ambitions of merging CeFi and DeFi, paid off handsomely.
At spot rates, the BNB price is trending above $320, has pared off last week’s losses, and bulls are ecstatic.
A glance at coin trackers shows that the BNB price is steady on the last day, adding 40 percent week-to-date versus the greenback.
Meanwhile, BNB is up double digits versus BTC and ETH during that period.
Technically, BNB/USD prices appear to be bouncing off key support lines. This is considering demand over the last day. The average BNB trading volumes steady at $2.6 billion.
Binance Coin (BNB) Market Overview
From the BNB/USD daily chart, there are hints of strength.
Admittedly, BNB prices have more than halved after peaking at $650—May 2021 highs. Still, even with the over 50 percent correction in the last six weeks—or so, the path of least resistance remains upwards. Binance bulls are confident market forces favor BNB, especially if prices trend above key support lines.
As read from the chart, BNB support stands at $200. It is a critical buying zone at around the 78.6 percent Fibonacci retracement level of the last five months. However, the only tinge of weakness is that horizontally ranging markets within the May 19 bear candlestick. The conspicuous, high-volume bear bar may have marked the climactic end of sellers that can be traced to mid-April.
Ideally, a close above $400, the middle BB, and $520 nullifies bears, setting the foundation for higher highs in the subsequent sessions. Losses below $200, on the flip side, confirm sellers of May 2021 and may see BNB sink to $100.
Binance Coin (BNB) Market Movers
BNB is the coin priming the Binance ecosystem.
The rise of BSC, the exchange’s smart contracting platform, is the force behind BNB.
Odds of more expansions in the days ahead, subject to the platform’s increasing popularity and sparked by ETH Gas fees woes, may further pump BNB.
Also, Binance plans to ramp up their burning of BNB as they aim to slash total supply from 200 million to 100 million in the next few years.
BNB/USD Technical Analysis
BNB prices fell by over 50 percent from May peaks.
At present, BNB/USD prices are consolidating above $300 and slightly over $100 from the main support level at $200.
If bears press lower, the BNB prices may sink to $120—H2 February 2021 lows.
BNB Price Prediction
On the reverse side, if May 19 marked the end of sellers, a close above $400 and the middle BB opens up BNB for a retest of $650 (May 2021 highs).
Risk-averse traders can wait for complete reversals of May 19 losses. Meanwhile, aggressive traders can load the dips as long as prices trend above $250—last week’s lows.
Disclaimer: Opinions expressed are not investment advice. Do your research.