BNB marks a new high against Bitcoin. What is behind this uptick?

Avatar James Lochner 2 years ago

The cryptocurrency created by Binance, BNB, is standing out in the crypto market, thanks to an isolated rebound in its price, even achieving a new all-time high against Bitcoin.

At the time of this writing, BNB is trading at $305,04. It accumulates a gain of 3.76% in the last 24 hours, and 14.20% in the last 7 days. With a capitalization of $49.451 billion, it is the 5th largest cryptocurrency on the market.

Top 10 of the crypto market. BNB stands out with profits, while everyone falls on a par with Bitcoin. Source: CoinMarketCap.
Top 10 of the crypto market. BNB stands out with profits, while everyone falls on a par with Bitcoin. Source: CoinMarketCap.

BNB was a better short-term bet than Bitcoin

It is not a minor fact that BNB has set a new high against the leader of the crypto market.

Investors who chose to invest in this cryptocurrency, instead of Bitcoin, can now see the best fruits of this decision.

The coin created by Binance is now trading at 0.01335 BTC, escaping above a resistance that left the previous all-time high of 0.01235 BTC.

BNB had already been showing the intention of continuing its uptrend against Bitcoin, marking continuous lows higher and higher, while the price rested in a lateral range shaped like a pennant.

Now we are seeing a resumption, which while it seems successful, still does not show enough volume to rely too much. If in the short term, BNB returns to the range, then it could be a false breakout.

The reasons behind the isolated rally

The exact catalyst behind the recent surge is unknown, however, it seems to be due to the strong fundamental foundation that the BNB network possesses.

According to data provider Coin98, BNB Chain currently owns a total of 178 million addresses, and has grown by 42% so far this year.

It is the 2nd network with the most addresses, only below Ethereum, which has 202 million; a figure, in addition, quite close to that of BNB.

In addition to this, BNB Chain has the DeFi application that, by far, is the one with the most active users. In the last 30 days, PancakeSwap has had more than 2 million users using its platform.

Amid a time of little positivity in the market, an Ethereum network that remains expensive for the average user, and other blockchains suffering interruptions and attacks, the solidity of BNB attracts attention.

Analysis of the price of BNB frete to the US dollar

On the weekly chart of BNB vs USDT, we can see that the price has been breathing upwards constantly, having marked a minimum of $183,4, respecting a very important demand zone.

To confirm the beginning of a broader rally, the resistance at $320 must be overcome with determination.

In case it doesn’t happen soon, then we could see new sales in the short term, perhaps looking for the large support zone around $200.

Daily chart

From this time frame we see the reason that BNB has surpassed Bitcoin, since it has been developing, without many setbacks, a clear short-term uptrend against the US dollar.

With continuous lows and higher and higher highs, BNB is looking at the important resistance at $320 as its next target. At the moment there is a good probability that it will make it through, however, the low volume tells us that there is still not much buying interest.

In case the ascending line that has been respecting the price is lost, then the recent rally would lose its relevance.

All our publications are of an informative nature, so in no case should they be regarded as investment advice.

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