4.3.2021 - Binance Coin (BNB / USD)
Hi Traders!
In today's analysis, we will take a closer look at the BNB exchange coin. However, we will try it a little differently and we will not analyze a specific trade, as you are used to.
The BNB has undergone almost incredible growth in recent weeks - in numbers, it is 861% in 21 days. At the same time, it created its new ATH at USD 349. During the big drop in prices a year ago in March, its price was around USD 10 (minimum at USD 6.32). The BNB has grown since this level by more than 2,200%.
FUNDAMENTAL
BNB is a Binance exchange coin, which is the largest crypto exchange in the world. It leads in trading volume and is one of the largest in the number of users. So if the exchange succeeds, their coin should also succeed. Binance has a clear policy and a very well-established ecosystem around the BNB. Exchange clients are motivated to hold the BNB, as they can get up to a 50% discount on exchange fees. The equation is therefore quite clear - the more users and trades, the more BNB is held. This, of course, increases demand and reduces supply, which has a significant effect on price growth. Not to mention that many investors buy and hold BNB as HODL.
TECHNICAL ANALYSIS
From the point of view of technical analysis, it is already a bit worse and the extreme growth just mentioned is to blame. Similar growth will always take its toll, for several reasons. The main one is untested supports. After breaking the maximum, the BNB immediately went into exponential and we know that support is support only when it is tested. As BNB only grew, it failed to create any significant supports in the process. If a correction comes, it is difficult to determine how deep BNB can fall. Given the strength of growth and evaluation, even if BNB fell by 30%, it could still be considered an excellent investment. The best thing that could happen to BNB now is that it will move to the side for some time, or slightly fall and create a structure at this price level. Creating volume and supports at this level would mean that users are willing to trade BNB at these prices as well, thus creating an excellent basis for further growth.
Currently, I do not dare to estimate where the BNB may fall. Anyway, I marked 2 supports on the chart, which we could hold.
May the crypto be with you!
In today's analysis, we will take a closer look at the BNB exchange coin. However, we will try it a little differently and we will not analyze a specific trade, as you are used to.
The BNB has undergone almost incredible growth in recent weeks - in numbers, it is 861% in 21 days. At the same time, it created its new ATH at USD 349. During the big drop in prices a year ago in March, its price was around USD 10 (minimum at USD 6.32). The BNB has grown since this level by more than 2,200%.
FUNDAMENTAL
BNB is a Binance exchange coin, which is the largest crypto exchange in the world. It leads in trading volume and is one of the largest in the number of users. So if the exchange succeeds, their coin should also succeed. Binance has a clear policy and a very well-established ecosystem around the BNB. Exchange clients are motivated to hold the BNB, as they can get up to a 50% discount on exchange fees. The equation is therefore quite clear - the more users and trades, the more BNB is held. This, of course, increases demand and reduces supply, which has a significant effect on price growth. Not to mention that many investors buy and hold BNB as HODL.
TECHNICAL ANALYSIS
From the point of view of technical analysis, it is already a bit worse and the extreme growth just mentioned is to blame. Similar growth will always take its toll, for several reasons. The main one is untested supports. After breaking the maximum, the BNB immediately went into exponential and we know that support is support only when it is tested. As BNB only grew, it failed to create any significant supports in the process. If a correction comes, it is difficult to determine how deep BNB can fall. Given the strength of growth and evaluation, even if BNB fell by 30%, it could still be considered an excellent investment. The best thing that could happen to BNB now is that it will move to the side for some time, or slightly fall and create a structure at this price level. Creating volume and supports at this level would mean that users are willing to trade BNB at these prices as well, thus creating an excellent basis for further growth.
Currently, I do not dare to estimate where the BNB may fall. Anyway, I marked 2 supports on the chart, which we could hold.
May the crypto be with you!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.