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BNB Is a Fundamentally Strong Crypto; Should You Invest?

As the bear phase of the market continues, investors look for the potential future growth of the crypto market. BNB is one of the popular cryptocurrencies in the market with a strong fundamental for future growth. Indeed, it is a valuable asset for the long term. 

Binance was launched in 2017, and after that, they successfully built a huge community to sustain themselves in the market. Currently, it is the largest cryptocurrency exchange in the world by trading volume.

It has now launched Binance Smart Chain for dApps, which makes them fundamentally stronger. It will not meet a fate like Terra in the near future, so most investors think it is a less risky investment in the crypto world. 

Did you know that you cannot invest in Binance shares by investing in BNB? That means you cannot claim the profit of the Binance foundation by investing in BNB coins. However, if Binance grows, BNB prices will grow with it. That means you can invest in BNB if you believe in the profitability of Binance company.  

Many analysts compare Binance with Bitcoin and Ethereum. The growing usage and shrinking supply will keep the scarcity of this coin, which favors long-term investors. Though the present market is in bear’s grip, big investors are capitalizing on the opportunity to gain long-term.

At the time of writing this post, BNB was trading around $231.8. It is in an upward trend in the short term because it is forming higher highs and higher lows, but $280 is a strong resistance level on the short-term chart. 

The daily chart indicates bullishness, which is supported by MACD with green histograms. We do not think it will consolidate between a range of $216 and $250, but it might reach the level of $280 and consolidate for a few weeks. Overall, it is a good time for short-term investment.

Fundamentally BNB is strong, so it is safe for long-term investment, but we have to analyze the long-term chart for a better view. Since last year November, it has been in a downtrend, but now it is taking support around the $216 level. 

Though most of the technical indicators are bearish now, according to the price action, it is suitable for short-term trading.

Sara Gillard: Sara Gillard is media focused research analyst and strategist with a background in blockchain technology and cryptocurrencies. She contributes latest news and insights into digital economy at a global level. She holds investments in BTC and several altcoins. She is optimistic about potential of cryptocurrencies. In her free time, she enjoys running and aerobics.