Changpeng “CZ” Zhao is probably very happy now. Binance Coin (BNB), the official crypto used in the largest crypto exchange of the world by trading volume, has just passed IOTAand it is now the 12th largest token by market cap in the crypto industry.
At around 1 pm GMT today, BNB reached a market cap of $856.6 million USD, its biggest since November 20, 2018, a month in which the crypto industry took a very strong hit from the bear. IOTA remained at $807.1 million USD, lagging fairly behind the official token of the famous exchange.
This is the result of a trend that started on January 3. During the last 20 days, Binance has been able to push its token up while IOTA was in a slow but steady decline. They officially traded places in the ranking by January 23 and the trend was solidified today.
Why Is BNB Up? New Jersey Exchange And Decrease In BNB Supply Helps
Part of the reason for the prices going up is that Binance has a very strong plan, but some aspects are more prominent than others. One of them was the company opening its new Jersey exchange, which is set to cater to the United Kingdom and the European Union, as it paired BNB tokens with EUR and GBP.
The move was made to coincide with the Brexit, as the CFO Wei Zhou affirmed. Many UK investors feel insecure about the whole event, so now it is a good time to offer them more token investments. This was a great reason why there are more people buying BNB now.
Expansion is always a bullish sign for investors, so many of them saw this as a great chance to invest in a token that was already going up before the event happened.
Another important fact that is making investors excited is that Binance is set to launch its own ledger, Binance Chain. The new chain would help companies to create their own Initial Coin Offerings (ICOs) and create tokens using BNB as a basis, just what Ethereum (ETH) offers.
With plans for launching a decentralized exchange soon that would use BNB tokens, the coins get even more valuable in the market.
Finally, there is the quarterly BNB burn round. By burning 20% of its tokens that are received by trading fees, the exchange actually deflates the price of BNB and make it go up in the market. The burning protocol is automatic and will burn the 100 million BNB tokens that were sold during the ICO, an ingenious plan, really.
Binance Coin (BNB) Price Analysis – BNB Approaches Important Support
|Key BNB resistance levels:||$28.7, $32.6, $34.6, $36.3, $39.5|
|Key BNB support levels:||$26.2, $24.1, $23.1, $20, $18.3|
*Price at the time of writing
BNB Long Term Price Prediction: Bearish
As one of the best performing cryptocurrencies of 2019, Binance Coin BNB, 3.73% has demonstrated a stunning performance in the first half of the year. Now, the market has remained in a bearish condition since June 22 after marking $39.59 as the current yearly high.
The native token of Binance Chain is now approaching the ascending trend line (yellow) which has been acting as pennant support for the market over the past five months now. Considering this support line, Binance Coin could break the yellow line to $24.1, $23.1, $20 and $18.3 after meeting $26.2.
If this yellow line continues to provide support, the price may rebound to $28.7, $32.6, $34.6, $36.3 and $39.5 on the upside. Currently, the RSI is moving sideways following the past few days of decline. Despite the recent downtrend, Binance Coin is still showing a positive sign on the Stochastic RSI.
BNB Medium Term Price Prediction: Bearish
On the 4-hour chart, Binance Coin is displaying downward movement. BNB is currently changing hands at causing the market to exchange hand at around $27.4 and could be getting ready to explore the $26, $25 and $24 support levels. As shown on the chart, the descending trend line (yellow) remains a defensive line for the bears.
Currently, the BNB token is down by 1.9% on the day, owing to Bitcoin’s price rejection at around $12,300. Should the trend reverse and crossover the yellow line, the BNB market could rise to $30, $32, $34, $36 and above. However, the bears seem to be in play for now.
The RSI has nosedived again below the 50 level. The token’s price may continue to fall if the RSI drops further. Due to the ongoing price drop, the BNB price is now testing the oversold level on the Stochastic RSI.
BNB Short Term Price Prediction: Bearish
The price of Binance Coin is dropping on the hourly outlook due to the recent sell-off in the crypto market. So far, the month of August has projected a bearish market after a short opening which has brought trading into a channel formation. In late July, we saw the price increase from $26.2 before the price got rejected at $28.7.
BNB is now approaching $27.1 and $26.8 on the channel’s lower boundary before a bounce is likely to occur. A further drop may floor the market at $26.5 and $26. However, if the bulls can push the price back to $28, the next key resistance levels to watch out for are at $$28.5, $29, $29.5 and $30.
Over the last few hours, BNB has dropped to 39.7 on the RSI indicator. The Stochastic RSI has reached the oversold territory. We can expect a rise shortly.
Binance Coin (BNB) Is Successful Because It’s Centralized – Weiss Ratings
Binance Coin (BNB) currently ranked the 6th largest cryptocurrency by market cap has had a good run this year. BNB’s performance has been well noted by the crypto community as well as Weiss Ratings, a financial ratings agency. According to Weiss Ratings in a tweet on July 25, 2019, BNB is a success because it is centralized.
BNB Makes Remarkable Leap in Price in 2019
As of press time, BNB is trading at $29.36 with a market valuation of over $4.5 billion. Its year-to-date high has been $39.57 which is quite intriguing on considering its opening price of $6.19 and a market cap of barely $800 million at the start of the year. There’s also its ICO price of $0.10 to contend with. Similarly, BNB kept surging in price despite Bitcoin’s sideways trading in the first few months of 2019.
Weiss Ratings, on the other hand, is of the opinion that BNB’s success can be attributed to its centralized nature. Specifically, the centralized nature of BNB has enabled its creators to constantly create new use cases for the virtual currency. As a result, it has made a positive impact on its market cap.
BNB’s Use Cases on Binance and Binance LaunchPad
The use cases Weiss Ratings has hinted can be associated with BNB’s use to pay fees on Binance, one of the top cryptocurrency exchanges in the world. Users of the Malta-based exchange are incentivized to use BNB instead of BTC to pay fees by offering a 25% discount on trading fees.
In the same manner, BNB has been the major cryptocurrency received by Binance during the token sale of assets such as BitTorrent, Fetch.AI, Celer, and Matic on Binance Launchpad. On March 24, 2019, Binance also announced that its next token launch will be on a lottery basis and not the first-come-first-served system.
Binance’s Quarterly Burning of BNB’s Token
As such, anyone who holds a certain amount of BNB for at least 20 days before the token sale will be able to claim tickets to be a part of the lottery. The news was, however, able to surge BNB’s price at the time by almost 15 percent. There’s also Binance’s strategy of burning a certain percentage of BNB in their reserve allocation on a quarterly basis which has also impacted on the asset’s price.
On the contrary, some members of the crypto space were not in agreement with Weiss Rating’s stance. They opined that centralization should not be attributed to a coin’s success. A user, for instance, said Tether (USDT) is minted in excess before it is used to pump BNB’s price. Another remarked that BNB’s success may be short-lived since regulations could potentially kill it.
Binance Coin Price Prediction: Will BNB Hold the $25 Support Level?
|Binance Coin price:||$25.60|
|Key BNB resistance levels:||$30, $40|
|key BNB support levels:||$25, $20|
*Price at the time of writing
Binance coin Long Term Price Prediction: Ranging
Binance Coin BNB, -0.35% is currently in a ranging market according to the weekly charts. It’s trading just above its key support level at $25 after an immense run from $5 at the start of the year. BNB looks to be suffering from the Bitcoin pullback and the general markets but it is still in a good position to trade higher.
Over the long-term, we can expect BNB to continue flirting with its key support levels around the $25 area. If support does not hold, the coin could drop to its next support level at $20.
Binance coin Medium Term Price Prediction: Bearish
Looking at the medium-term, daily charts we see a grimmer picture for the currency. The RSI is pointing down but is not yet in oversold territory. The coin is also below its 9-day moving average and is looking to move lower.
As markets do not move in a straight line, we could expect a slight bounce to the upside, especially if the RSI dips in oversold position. Traders looking to trade the bounce could jump in and save BNB from falling further.
To give this temporary downtrend some credit, the volume from yesterday’s daily candle was substantially higher than others in the previous weeks and is showing no signs of slowing down.
Binance coin Short Term Price Prediction: Bearish
On the short-term, 4-hourly charts, we see that sellers are firmly in control. The RSI made a head and shoulders pattern in the oversold territory and its currently staying put. Buyers jumped in briefly to move the needle towards the bulls, but the overall trend is downwards.
BNB continues to slide in favor of the bears despite rumors that Binance intends on opening a cryptocurrency exchange in South Korea. Details of the proposed opening remain scarce, but some sources have indicated that Binance would work with local partners to open a new exchange in the country.
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