Binance Coin on the rise after having reached lows not seen in 14 months!

Avatar Robert Mayne 2 years ago

Binance Coin, the native token of the largest crypto exchange, has seen a rise in recent days, mainly driven by the Bitcoin uptrend. However, this was achieved after reaching a minimum not seen since May 2021.

From its low registered on July 12, at US $ 217, to its current level, it has risen approximately 23%; and it may continue to register gains in the medium term. It should be noted that at the time of making this report it is trading exactly US $ 270, and it registers a rise in the last 24 hours of 4.88% according to data from CoinMarketCap.

What triggered Binance Coin to the upside?

Binance has been expanding as the days go by, and this is something that benefits its native currency, BNB, by a lot. However, beyond that, we must also consider the burning of the crypto, and the feeling that investors have when the quarterly burning is carried out.

The burning that took place on July 13 and was almost 2 million BNB tokens; which adds up to a total of 435 million dollars. Undoubtedly, this has been the main fact that caused Binance Coin to go up. This can even be detailed in the daily charts…

At the moment, BNB is trading 30% higher than its monthly minimum. And we can safely say, that it was after the burning that the bulls began to shoot up prices.

On the other hand, it is worth considering that the ECB has raised rates by 50 basis points; exceeding the expectations that investors had. Therefore, it is quite likely that we will see a weakening in the dollar. And this fact could trigger a rise; both in BNB, as in the stock exchange or even other cryptos.

Technical analysis on daily charts

If we delve into the daily charts of the BNBUSDT pair, we will notice the above; that is, the burning of tokens and their bullish effect on crypto prices. However, we can also evaluate the consecutive rejections that the bulls made in the support zone that is located at US $ 217.

This double floor is an indicator that warns of a potential resistance breakout. And as we can see, the resistance zone at US$ 249 was easily overcome.

Binance Coin is on the up, but may see a small pullback in the coming hours
Binance Coin is on the upside, but may see a small pullback in the coming hours. Source: TradingView.

We are currently looking for the US$289. Although it is likely that we will see a fall earlier, as the RSI is located quite close to overbought levels. Therefore, there may be a profit-taking. In addition, the MACD confirms the pullback, as its histogram shows weakness in the trend.

In short, it is almost certain that there will be a fall to the support that is located at US$ 249. This small crash in BNB is also confirmed by the ENV channels. Since, the candles are located at the upper levels of them, which warns us of a pullback to the central margins; around US $ 240, but then, we would be continuing upwards to US $ 289.

The information in this content should be taken for informational purposes only, not intending under any point of view to urge the purchase / sale of financial assets.

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