BNB Wipes Off Last Week’s Sell-Off With One Freaking Daily Candle

Binance's BNB Wipes Off Last Week's Sell-Off With One Freaking Daily Candle
Binance’s BNB Wipes Off Last Week’s Sell-Off With One Freaking Daily Candle

Yerevan (CoinChapter.com) — Nothing stops BNB from going further higher, at least in the running weekly session.

The Binance ecosystem’s settlement token resumed its uptrend after crashing by as much as 35.38 last week. On Wednesday, around 0754 GMT, bids for BNB/USD’s surged to nearly $597 compared to $416 on April 18. That shows at least a 43 percent upside retracement, proving that bulls do not want to give up on their bias yet.

Binance Coin holds upside bias above the green wave. Source: BNBUSD on TradingView.com
Binance Coin holds upside bias above the green wave. Source: BNBUSD on TradingView.com

According to indicators presented in the chart above, it appears BNB treats its 20-daily exponential moving average as a concrete support level. There, traders convincingly start accumulating the token to test newer highs. It happened last week and throughout the February-March daily sessions. The 20-DMA holds BNB at its bullish best for now.

The late-March session saw the Binance Coin slipping briefly below the green wave. But even the attempt to extend the sell-off any further lower saw extreme resistance from bulls. They started accumulating the token, this time, near the 50-day simple moving average (the blue wave). That gave BNB double-layered support.

Prominent cryptocurrency analyst, who operates under the pseudonym ‘Loma,’ stated that Binance Coin’s latest price actions signal extended upside trends in its market. He tweeted this Wednesday:

“When you see a coin undo a week’s worth of downtrend in one daily candle with BTC barely pumping. It’s not bearish.”

BNB Fundamentals

The core catalysts that have driven BNB to its recent milestone highs involve the launch of the Binance Smart Chain and an overall boom across the cryptocurrency markets themselves. For instance, Binance Smart Chain proposes to do away with many problems that the top blockchain Ethereum poses to its users. They include recurring higher gas costs and transaction fees.

Read more: Binance Smart Chain Could Pass Ethereum For Top Dog in DeFi Space

DappRadar’s 2021 Q1 overview report released on April 1 showed that the Binance Smart Chain conducted transactions 35 percent cheaper than what Ethereum typically charges. In March, the total value locked in Venus, a money-market protocol working atop Binance Smart Chain, surpassed that held by Ethereum-based Uniswap and Compound combined. That helped BNB rising further higher.

Meanwhile, BNB’s core utility remains to offer Binance exchange users discounts on their trading fees. That said, if the cryptocurrency sector, on the whole, attracts more users — which it has done incredibly well against the backdrop of the coronavirus pandemic, lower interest rates, and rising global debt levels — it tends to expand Binance’s clientele further. That expects to increase the demand for the BNB tokens, against a limited supply.

Photo by Hedgehog Digital on Unsplash

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