Binance Coin (BNB) is the native token used on the Binance cryptocurrency exchange platform. The BNB token is mostly used for receiving discounted trading fees on Binance.
BNB first hit the market in July 2017 at $0.07 and saw huge success stemming from the bull run frenzy that took over the market at the end of the year. It was exacerbated by Binance’s booming popularity as a growing top-tier cryptocurrency exchange. Binance Coin gained more than 31,000 percent last year, closing out an all-time high of $23 before the bear market would take over in 2018.
BNB is currently trading at $4.93 per token and is ranked 13th with a total market cap of $640 million.
Taking a look at the three-day and two-week stochastic RSI, both values appear to have reversed at 60 and are just about to hit the overbought territory between 80 and 100.
There will not likely be enough power to push BNB past the 80 stochastic RSI mark, indicating the price could continue to fall back soon, possibly for another test of the $4.23 support.
SAFU From Bears?
At first glance, it is clear that BNB has had its fair share of bloodshed in 2018, but it has actually fared quite well compared to nearly every other altcoin — even beating out big players like Bitcoin (BTC) and Ripple (XRP).
At the time of writing, BNB is down 78 percent while the first and second-ranked BTC and XRP have lost 83 and 89 percent respectively.
Since November, BNB has fallen from $10 to $5 before bouncing back to $7 and quickly slipped back below $5 last week.
Considering the stochastic RSI is nearing the overbought territory and the continuing downward trend in the market as a whole, it is most likely that BNB will continue to take losses in the coming weeks. If the $5 support holds, it could act as a strong horizontal support for BNB to consolidate until it has enough power to break through the descending line. Its first target would be to break above the 0.236 Fibonacci retrace level around the $8 mark.Binance appears to be coming close to releasing its decentralized exchange (DEX). If successful, BNB could see huge gains in 2019, especially if the market reverses. Click To Tweet
Traders should be cautious of BNB falling to the next level to the downside around $2.75 — a strong resistance and support level created last year during the bull run.
Do you think the next bull run will be enough to boost BNB to new all-time highs? Do you trade on the Binance platform using BNB to pay fees? Let us know in the comments below!
Images courtesy of TradingView.
Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile. The author of this article does not hold BNB.