Binance Coin, the 5th largest cryptocurrency by market cap, has been one of the market outliers over the last week. Fundamentals have been driving BNB price higher, and many traders are seeing favorable setups on the technical side of things. What price levels will be on watch in the short term, and why could BNB rally another +15%?
At the time of this reporting, BNB price is currently hovering around $29.021. The 5th largest digital asset by market cap is having an impressive week, seeing +20% growth ( last 7 trading sessions). Additionally, BNB price has seen +22% growth the last month, compared to Bitcoin which has fallen -8%. Over the last 7 days, here is how Binance Coin stacks up against other large-cap cryptocurrencies:
Binance Coin Technical Analysis
As we can see from the chart below, BNB price hit yearly highs earlier this month, before experiencing a relatively sharp sell-off. The week of September 20th, BNB retested support at $23.20 levels which trigged bullish momentum. As of recent, BNB price has surged above $27.65 resistance which could fuel another leg up.
In the short-term, traders will be watching that $27.65 support level. As long as Binance Coin can maintain this level, many will argue that the digital asset has good potential to surpass yearly highs and test the next resistance around $33.30. The price rate of change ( ROC oscillator ) has a really nice setup, showing strong BNB momentum right now. We can see a very similar ROC setup earlier this month when Binance Coin made new yearly highs. In the event that BNB failed to hold $27.65 support levels, you could see profit taking, which could drive prices down to a retest at $23.20 support.
Binance Coin Fundamentals
Aside from technical analysis, a couple fundamentals seem to be driving BNB price over the last 30 days. During the last month, we have seen various announcements coming out of Binance pertaining to BNB. We believe that the initial catalyst was when Binance announced staking support for BNB. More utility came to fruition, as investors could now leverage Binance Smart Chain testnet for staking. We strongly believe that this has created more demand for BNB over the last month. You can also argue that the staking mechanism will add more BNB value by reducing the circulating supply in the long-term.
In addition, Binance Smart Chain has fueled the evolution of new decentralized stablecoin infrastructure called “Venus.” This project was developed by Swipe Wallet, which is a company that Binance has recently acquired. Stablecoin markets have seen exponential growth this year, and the developments behind Venus seem to be lucrative for Binance as a whole and BNB from a staking perspective.