Binance’s cryptocurrency, known as Binance Coin or BNB, continues to gain ground in the crypto market, and despite failing to jump strongly in recent days, the bulls continue to defend the most important short-term support, making it the search for a new all-time high is becoming more and more likely.
At the time of writing BNB is trading at $ 40.59, accumulating a loss of 4.82% in the last 24 hours. Thanks to a market capitalization of more than 6.2 billion dollars, this cryptocurrency is the tenth largest in the ecosystem.
There are several fundamentals that have brought Binance Coin to where it is today, and that will continue to carry it higher in the near future.
Here is a brief fundamental and technical analysis to know the current behavior, and what this tells us about what could happen next.
Binance Coin has a good foundation to seek an all-time high soon
Probably one of the main factors that led BNB to generate profits of more than 180% in the last 6 months, is the expectation of the investors of the planned burning of tokens.
On January 18 Binance Coin marked the current historical maximum, just one day before the largest coin burning of this token occurred, a mechanism that is used to regulate scarcity, and that in theory should revalue the cryptocurrency.
It is quite logical that with equal or greater demand, in the face of a reduction in circulating supply, the price will tend to rise. Investors know this, and they have been discounting the rise because it is a programmed mechanism.
BNB should continue to be pressured by this decline in supply. Now more naturally thanks to real trading and not just by mere speculation.
But it is not only this fundamental factor that pushes the price of this token higher. Binance is the largest cryptocurrency exchange, which provides good reason for the BNB rise.
The exchange recently launched a chain compatible with smart contracts, and since its inception it has been tremendously successful, today with more than 60 projects online and 600,000 active addresses.
All these factors together are generating an impossible snowball to stop, and that tell us that the future will continue to be positive for this cryptocurrency.
BNB technical analysis
The strong historical upward trend of this token is well known, and the important rally it has carried out in recent months alongside other participants in the ecosystem. This trend will undoubtedly continue to lead Binance coin to seek high after all-time high in the coming months.
However, what we care about today is a vision of what could happen in the near future, and for that we look at the chart with daily candles.
From the time frame with daily candles, we observe bearish intentions in recent days, but strongly hindered by a support at $ 37.37.
For now the bulls continue to be in control. What we see today tells us that it looks more like a rest before continuing to rise than that of significant downward intentions.
If that support at $ 37.37 is not crossed, Binance Coin should go looking for an all-time high in the next few days. This is the most likely scenario because the force majeure is bullish.
Should support be breached, BNB would be hit by strong selling pressure.
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