• Why Does Binance Coin Have Such Extensive Future Potential?

  • Binance Coin has had a unique journey since its inception in 2017 by the Binance Exchange. Initially, it was used as a discount coin. As a utility token, it did not carry much weight or traction. However, in September 2020, Binance Smart Chain, a parallel chain devoted solely to smart contracts, dapps, and DeFi services, was launched. So far in 2021, BNB has grown 20X since this update.

    Apart from Bitcoin and Ethereum, ADA and TUSD are ranked fifth in terms of market capitalization. Everything in its 168 million supply is in circulation, with a combined market value of close to $60 billion.

    If someone had purchased Binance Coin in 2017 at a price of $0.10 and kept their investment of $100, they would have received 1000 BNB coins. In 2021, 1000 BNBs would have been worth $348,000 at today’s prices.

    Analysis of the Binance Coin Price

    Binance Coin had a strong bull run until the first week of September, but the subsequent profit booking has destroyed 30% of its value created in August 2021. Furthermore, the consistent breaking of support levels, followed by a steady decline, creates fear of further doom out of weakness.

    Breaking the 200-day moving average curve at $400 a week ago was the first indication of continued profit booking. What began as profit taking following a strong rally in August has transformed BNB into a technically weak cryptocurrency. All that stands between a possible uptrend and a retest of the June 2021 lows is another strong swing support level of $350. BNB also has a $250 bounce-back region.

    The price action on September 26th, 2021, which ended with a pin bar candle with a significant red wick, suggests a pullback or buying from $350 levels. Volumes have increased to twice or three times what they were on normal days. Volume growth is a two-edged sword that can shift the trend in either direction.

    While the RSI has recovered from the weaker areas, the nearest dip has failed to mark similar lows on the RSI, indicating the possibility of a trend reversal. On BNB, profit booking has already lasted more than 20 days. The MACD indicator also indicates a trend reversal by narrowing the gap between the two curves.

    Since then, the BNB coin has been under a selling sentiment, with each week seeing new lows, causing a panic in the crypto valuation. Since Binance Coin has some real value, the pattern of a new low followed by buying sentiment has occurred far too frequently. As of now, both the RSI levels and the price action have retraced.

    According to Binance Coin price prediction, BNB coins must cross and hold the $360 level for any hope of re-engaging buying sentiment. Trading above $385 should be interpreted as a sign of resumption of buying. For the time being, BNB should consolidate between $360 and $340. The RSI is currently at a level of 55. Passing through the $385 resistance level would indicate a return of buying interest in BNB.

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