Binance Coin Continues To Hold Strong Relative To Other Altcoins

Binance Coin has seen a 1.97% price increase over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price of $10.73 after seeing a price increase totalling 8.96% over the past 7 trading days.

Binance Coin is the cryptocurrency ERC-20 based token created by the world leading exchange Binance. The Binance Exchange was founded in 2017 by Changpeng Zhao, one of the creators of blockchain.info, and has already become the leading exchange by daily transaction volume in a short space of time.

The Binance token allows users to receive discounts for fees on the Binance trading platform. Binance Coin (BNB) had raised over $15 million in its ICO and has far surpassed that value already in market cap.

Users that use the BNB token on Binance are offered up to 50% discounts in trading fees on the platform. This will lead to significant savings after buying over a long period of time. This specific use case is apparent through over 90% of the Binance team accepting their entire salaries in BNB tokens, presumably so they can go ahead and use the BNB to buy their favourite altcoins at a discount.

The Malta based exchange have pledged to conduct a quarterly buy back and burn scheme. They have promised to use 20% of all profit gained each quarter to buy BNB from the markets and send them to a burn address. They have agreed to do this until they buy back 50% of the current coin supply. If demand dies down for BNB, at least this gives a cushion to the level it can fall to as the Binance team will be buying every quarter.

BNB is currently ranked at 16th position in terms of overall market cap across the entire industry. The 13 month old coin has a total market cap value of $1.02 billion after seeing a rather muted, relative to the rest of the market, 20% decline over the past 30 trading days.

Let us continue to analyse price action for BNB over the long term.

Price Analysis

BNB/USDT – LONG TERM – DAILY CHART

binance coin 31 aug

Analysing the market from the long term perspective above, we can see that the Binance Coin had experienced an incredible bullish run toward the end of 2017. It started when price action began at a low of $1.34 on the 12 of November 2017 and extended to an all time high of $25.18 two months later on the 12th of January 2018. This was a price increase totalling 1680% from low to high.

We can see that after placing the all time high, price action rolled over to find support at the .5 Fibonacci Retracement level in January 2018. This Fibonacci Retracement is measured from the entire bullish run outline above. Price action continued to decline through February until support was reached at the .786 Fibonacci Retracement level priced at $6.57.

We can see that this level of support proved to be significant as the market continued to rise from this point. We can see price action ascended for the next four months until rolling over in June 2018. The market is now currently trading back at resistance marked by the .618 Fibonacci Retracement level priced at $10.57.

Let us continue to analyse price action over the short term to highlight any potential support and resistance zones.

BNB/USDT – SHORT TERM – DAILY CHART

Analysing the market from the short term perspective above we can see that price action had underwent another bullish run as price action started from a low of $7.06 on the 6th of March 2018 and extended to an intermediary high of $17.47 placed on the 6th of June 2018. This was another 147% price increase calculated from low to high.

We can see that after the market placed this intermediary high it proceeded to roll over and fall. We can see that it had immediately found some solid support at the .5 Fibonacci Retracement level (drawn in red) priced at $12.22. This Fibonacci Retracement is measured from the entire bullish run outlined above.

The market was still not able to sustain itself above this support level and continued to fall throughout August. We can see that the market had found support at the .786 Fibonacci Retracement level (drawn in red) priced at $9.24. It also important to highlight that this area of support was significantly bolstered by a downside short term 1.414 Fibonacci Extension level (drawn in blue) priced in the same area.

This area of support proved its significance as price action rebounded from this area. We can see that the market has continued higher and is now trading slightly below the short term .618 Fibonacci Retracement level (drawn in red) and above the long term .618 Fibonacci Retracement level (drawn in black).

IF the bulls can continue to push price action higher, we expect immediate resistance to be located at the short term .5 Fibonacci Retracement level (drawn in red) priced at $12.22. This area of resistance will require significant momentum to overcome due to the 100 day moving average which is floating very close to the same price area. Further resistance above this level is then expected at the .382 Fibonacci Retracement level priced at $13.45.

Alternatively, if the bears begin to push price action lower, we expect immediate support to be located at the downside 1.272 Fibonacci Extension level priced at $10.12. Further support below this level will then be expected at the short term .786 FIbonacci Retracement level priced at $9.24.

The technical indicators within the market are largely printing neutral readings. The RSI is currently trading directly on the 50 handle as it decides which way the momentum will shift next. If the RSI can break back above 50 this will indicate that the bulls are in control of the momentum. However, if the RSI breaks below the 50 handle this will indicate the bears are back in control of the momentum within the market.

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