It is important to note for this technical analysis of BNB, that after reaching its all-time high of $691.7, it started a bearish phase. Thus, it fell to $183.4 in June 2022. However, its recovery has been better than most altcoins.
Today, Monday, 8/22/2022, BNB starts the week below the psychological resistance of $300. In turn, it also experiences an increase in sales that can mean a bullish failure, at least in the short term. For its part, the 200-day EMA seems possible to challenge if BNB manages to fix its support at $300 or above the 100-day EMA.
Right now, the BNB price behind $300 is still supported by an ascending trendline and forms the “sunrise star” pattern. Such a pattern reaffirms its dominance.
But, although this pattern indicates a reversal of the downtrend, the trading volume of this token should improve, as it is below the average. If not, this bullish pattern – in turn – will end up reversing. If this happens, the new support will be below or around $278 (which served as support last week).
Therefore, the factors to watch out for this week are a decline to $278. As well as a consolidation of the price above the psychological resistance of $300.
The BNB Chain continues to lead
An optimistic factor for long-termists is that the BNB Chain is still the network with the most new projects listed on platforms such as CoinMarketCap and Coingecko (the latter only tracks projects with more than 1000 Holders):
In the last 7 days, said platform (Coingecko) registered 42 new projects belonging to that network, followed far behind by Ethereum with 25 projects and by the Dogechain with 8 listed projects.
This shows us that, beyond the large number of alternatives that exist, BNB Chain is one of the networks preferred by developers. Despite the centralization, this blockchain is still “a cradle” for the implementation of Dapps. So, while everything is going “from strength to strength” on Binance, the medium-long term projections will remain optimistic.
The risks within the BNB Chain
The so-called “Blockchain 3.0” are emerging in the future as great alternatives to BNB Chain. An example of this is Cardano, a network that is already considered as 100% decentralized and that has great scalability proposals such as “Ouroboros”. While other Blockchains like Moonbeam, offer access to a whole multichain.
In this area, we must also remember Ethereum 2.0, which promises to solve a large part of the obstacles of said Blockchain and which is on the way to be implemented.
On the other hand, BNB Chain works on a progressive decentralization, however, this is quite slow. It is worth noting that there are only 21 validators in the BNB Chain, which keeps it prone to falls.
However, all of the above does not affect the current performance of this network, because as we have said, it is still preferred by developers and has a high degree of trust.
Will it be able to continue to maintain it despite its decentralization? It’s an important question to consider.
Note: This post is not an investment advice and its information should be taken for educational purposes and not as a guide in buying and selling decisions of digital assets.