The Binance Coin price is breaking out. The BNB is trading at $420, which is slightly below the all-time high of $423. Its market cap has soared to more than $64 billion, which is remarkable for a coin that was started in 2017 after its ICO raised $15 million. It has surged by more than 1,000% this year.
What happened: In the past few weeks, investors have grown interested in exchange-issued tokens like the Binance Coin, Crypto.com Coin, Huobi Token, and FTX Token. The latter has come from obscurity to become the 33rd-biggest digital coin in the world. This growth is mostly because of the rising activity in exchanges as revealed by Coinbase and Robinhood. Coinbase said that it generated more money this quarter than it did in 2020.
Similarly, Robinhood said that more than 9 million Americans traded crypto in its platform. Therefore, since Binance is one of the biggest exchanges in the world, the number of transactions has continued rising. That has made the demand for BNB relatively higher. The trend will continue as more people get involved with digital coins.
On the daily chart below, we see that the BNB price broke out on April 5 when it moved above the previous resistance at $348. Since then, it has risen by more than 20%. It is still above the short and longer-term moving averages. Also, oscillators like the Stochastic and the Relative Strength Index (RSI) has moved to the overbought level.
Therefore, in my view, the bullish momentum will likely continue during the weekend. For one, as I predicted earlier, we could see the Bitcoin price rally to $65,000 during this time. That will be a positive thing for BNB and other altcoins. As such, the key levels to watch will be $450 and $500, respectively.
