Binance Coin (BNB) is currently trading at around $17 following a major 3% pump from $15, at the beginning of October.
Overall, price has been on a downtrend, even though we are currently seeing lower highs.
Binance Coin experienced a short pump during the middle of August, reaching a momentary high of $32. However, the coin has been declining ever since and is currently close to 50% down on its summer highs.
The cryptocurrency is experiencing a mini-bull trend since October 7, and it shows no signs of cooling off!
Will the digital asset recover soon?
Let’s take a look at the chart for BNB.
As you can see from the chart above, BNB managed to fly past the 50-day and 20-day EMAs when its price pumped in August. However, since early September, we’ve had confirmation the coin is still experiencing bearish momentum, with price falling below all its EMAs and struggling to fight back.
I personally expected the price to consolidate around the $20-$24 region, but the market meltdown towards the end of September made sure that didn’t happen. The chart also shows the 50-day EMA is close to crossing the 20-day EMA to the downside – another bearish signal.
For the time being, I see little chances BNB will push higher, as the coin first needs to consolidate above $16 – a key level according to the volume profile. Afterwards, there’s not much trading volume until we get to the $21 region and above, meaning there’s a higher probability BNB can blast through these levels.
It’s still too soon to say whether that will happen though, given the thin volumes of around $2.4 billion. Even coins like Stellar Lumens (XLM) seem to have a more liquid market cap, according to Messari.
I personally expected BNB to start recovering sooner, given every crypto adviser on LinkedIn was saying IEOs will be the next big thing in crypto – at least for the next year or so.
However, what we’ve seen so far is another dying fad that has been taken over by “DeFi”. Maybe when serious new money comes in the IEO trend will shift, but so far it has been disappointing.
Still, Binance’s strategy of promoting its non-custodial service could also help the coin in the long term, as crypto enthusiasts care about how their funds are stored.
Finally, Binance US has taken off and US-based customers can now legally trade cryptocurrency on the platform. Check out what I wrote about the exchange and token on my latest exchange guide available here.
Safe trades!
About Binance and BNB
Binance is currently the world’s second-largest cryptocurrency exchange, with around $6 billion in assets traded in an average seven-day period. Binance’s rise to the top has been swift. Since its launch in July 2017, Binance has grown at a rapid rate. Binance was one of the first exchanges to reactivate user registrations at the peak of the 2017 bull market.
Binance Coin is also the name of a cryptocoin (BNB) traded and used on the Binance exchange. Since the ICO, the value of BNB has risen with the growth of the exchange. BNB is now among the top 10 cryptocurrencies in the world by market cap.
More Binance Coin news and information
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