Home BUSINESS What’s Next For Binance Coin After Its Nearly 20% Rally?

What’s Next For Binance Coin After Its Nearly 20% Rally?

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What’s Next For Binance Coin After Its Nearly 20% Rally?

Binance coin experienced some notable gains lately, rising close t0 20% in under 24 hours after Binance announced the creation of a $1 billion fund designed to encourage more widespread adoption of cryptocurrencies and distributed ledger technologies.

The digital currency rallied to as much as $467.89 this morning, at which point it had climbed 19.2% in less than 24 hours, Messari data shows.

After rising to that level, the digital asset pulled back, falling to almost $430 and then recovering, additional Messari figures reveal.

Since that time, binance coin has been trading between $430 and $470.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

As for where the digital currency might go next, several experts weighed in, providing technical analysis.

Kiana Danial, CEO of Invest Diva, evaluated the price history of binance coin using the Ichimoku Cloud, a technical indicator that makes use of several averages in an effort to provide a better sense of an asset’s momentum and overall trend.

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“BNB/USD has recently confirmed a break above the daily Ichimoku cloud, indicating the bulls are gaining power,” she stated.

“However, the digital currency is facing a strong resistance at the 61% Fibonacci retracement level of $528,” added Danial.

“The future Ichimoku cloud is flat. With that, unless there is a sudden, stronger than before bullish trigger in the crypto market as a whole, we could see the BNB gains capped at $528 in the medium term.”

Jake Wujastyk, chief market analyst of TrendSpider, also spoke to resistance the digital currency could encounter if it moves higher, specifically singling out the “previous highs from August 25th right around $520.”

Nick Spanos, cofounder of Zap Protocol, also weighed in.

“BNB’s next two important resistance levels are at $475 and $525. If they are convincingly breached, Binance Coin could experience a significantly bigger and prolonged breakout, even without another catalyst (such as the recently announced $1bn growth fund) providing it with fresh impetus,” he stated.

Spanos also spoke to the moving average convergence divergence, or MACD, a technical indicator that can be used to evaluate an asset’s momentum.

“The MACD indicator in BNB’s daily chart currently indicates bullish price momentum, as the MACD is above the signal line,” he noted.

“On the flip side, if BNB’s price falls over the coming hours and days, the bulls should be able to stop the downtrend at the $425 support level,” said Spanos.

“If this support level is breached, investors will then look to the $400 mark for support.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.

Source: Forbes


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