BNB, Resist @ $26.25, $30, $35, $43 – eventually $200I started buying BNB when it was around $2.50 but had sold all my holdings last year to pay for software development. I recently started buying back in as BNB broke out of a 7 month descending pattern at the beginning of February. But it was more than just breaking out of a 7 month descending pattern that is worth noticing. BNB had also crashed through the 2 year ascending trendline in a clear retention of the 7 month descending pattern over the 2 year support. It should be noted this very closely mimics BTC which had an almost 7 month descending channel, saw a bottom on the same day (16.Dec.2019) but BTC broke out of its descending channel mid-January, 2 weeks before BNB. There are still numerous others reaching breakout points soon, BTC willing.
As of yesterday, 9.Feb,2020, we managed to surge back up above the two year trendline but we were stopped at a fairly strong historical horizontal resistance around $26.25. Not shown completely in this chart, this line also is the cap of a previous ATH along and as acting support last summer. This could be a fairly tough resistance to break and we haven’t even fully established that we will retain our position back on top of the major ascending trend line yet. This seems to leave a fairly good opportunity for a small wedge to form here. In the event that we do wedge here, look for a break out very early march.
We could keep running up from here but just as we stumbled at $26.50, we can expect a good chance of another noticeable hiccup at $30 where we see $30 logical resistance, some recent previous soft resistance/support and a potential diagonal trend resistance. Past $30 we will see 2x or 3x soft resistance at $35 and then a potential hard resistance at our previous ATH around $43.
I believe gauging against similar traditional market valuations, not even counting future growth, BNB is hugely undervalued and really should be around $200 a piece, conservatively. So what to expect next, -A fairly significant resistance at $26.25 , less but notable resistance at $30 , a small hiccup at $35 and a fight for the ATH after that. In the short term keep an eye on that 2 year resistance, if we fall back under and find it as resistance again, it’s a strong sell signal. Long-Term, I see a hold to $200 then re-evaluate. It may take a couple years but $200 is coming . (See fundamentals overview below)
Fundamentals:
I can trade BNB long with confidence because I have a great deal of faith in its long term price action. There is a lot of angst against Binance in the crypto community but not only did/does Binance provide a lot of projects liquidity that they needed to get this far, they have worked tremendous legislation efforts enabling numerous countries a gateway into crypto. Binance has also have been buying back and burning BNB with some of their profits every quarter. And lets talk about those profits, $1Billion profit a year with a $3Billion market cap. Schwab and TDA trade at a 30 P/E and here, BNB is literally the only crypto traditional markets can valuate with a 3 P/E, its valuated at 1/10th of traditional stock brokers. It should also be noted not only do they own the majority of the lucrative and ever growing crypto exchange market, they now have a BAAS chain to compete with Ethereum, they have also started making a lot of really smart acquisitions, making them closer to a “google of crypto”. I think that this is one of the provably most undervalued crtypto’s in existence today.
This is not investment advice, merely observations from my point of view, DYOR.
Also please consider looking at depth metrics at vcdepth.io, we have partnered with TV to bring TV charts to the site. Here is a snapshot showing how we often see a prelude to a price drop when there is a spike in bids that is not directly related to a price run.
