Both Binance coin and Binance exchange was founded by Changpeng Zhao, an active cryptocurrency enthusiast engaged with blockchain technology since early 2013. His previous experience of developing software for the Tokyo stock exchange and futures trading software development for Bloomberg Tradebook provided Zhao with a broader exposure to trading and exchanges.
It was issued way back through an Initial Coin Offering (ICO) in July 2017 as a BEP20 token through the Crypto exchange trading platform, Binance exchange. It is currently traded with the trading symbol of BNB on various crypto exchanges. Binance coin became the native coin of its own Binance Chain but initially, it was running on the ERC standard of Ethereum Blockchain. Issuance of the Binance Coin was intended initially to be used for necessary upgrades of its Binance ecosystem including Marketing, Branding.
Binance Coin is also investing in certain Initial coin Offerings (ICOS) that are getting listed through its own Binance’s Launchpad Program and ending up providing a seamless platform for those who are willing to invest or trade in numerous different new virtual tokens as well as established ones. Binance Coin is also being used as a payment method on various web platforms such as Canva, BitTorrent, TravelbyBit, Crypto.com, etc.
BNB token has expanded its reach to multiple applications operating on the web. A large number of platforms have started accepting BNB as a method of payment and various fees such as transaction fees, trading fees, exchange fees. As per the trading volume data of April 2021, Binance Exchange is the largest cryptocurrency exchange in the world, while Binance coin has crossed the Market Capitalization of over $50 Billion.
Technical Analysis
Since February 2021, Binance started to rise from its stagnation period of price range under $ 50. Binance has risen over 600% and touched a high of Approx $ 350 on 19 February 2021 within 20 trading days. After price correction amid some profit booking, it has been trading within the range of $ 250 to $ 325 and seems to be consolidating.
It has been trying hard to break the resistance presented around $400 zones and the recent high of $ 380 is still far from the all-time highs of $692, made on 10th May 2021.
The price is currently hovering near the range of $330 – $350, which is way above its 200 Simple Daily Moving Average. This moving average line is acting as strong support, and it should be considered as an indication of strength in the token. The possibility of a value breakdown is possible only if it breaks the strong support offered by 200 DMA with a significantly higher volume.
Traders are advised to stay cautious as multiple tokenomics factors also influence the price actions of this cryptocurrency. People willing to take a long position on this asset are advised to wait for a breakout from this trading zone and let the price cross the psychological level of $400.
As MACD can also be seen way below the histogram and also showing a bit of consolidation in this range for the time being. But a crossover between the two lines would indicate a strong upward momentum in the value of this cryptocurrency.
It is advised for short-term traders to wait as the value of BNB can move for a breakout at current price levels. Although small resistance cannot be ruled out, the strength presented by its upward momentum combined with significant volume is indicating an upward rally in the short term.
At the same time, it is also advised to be cautious if BNB breaks its short-term support levels placed around 280. Breaking the immediate support will indicate subsequent weakness in the coin and make it harder for this cryptocurrency token to give a breakout.
RSI is also oscillating within the consolidation zones and it will have to break that zone for making a strong momentum in either direction. Considering the buying pressure at the current ranges, BNB portrays the potential for an upward breakout.