The Binance Coin price is hovering near its all-time high as interest in Bitcoin and other altcoins surge after the weak US non-farm payrolls (NFP) data. BNB is trading at $685, bringing its total market cap to more than $103 billion. This is a relatively strong performance considering that the coin was started after a $25 million initial coin offering (ICO) a few years ago.
What happened: Binance Coin is the native currency of the Binance Smart Chain. This is a fast-growing ecosystem that has helps many developers come up with decentralized projects. Indeed, some of its biggest projects have reached billions in market cap.
Binance Coin is the biggest project in the network. It is followed by Vinance USD (BUSD), PancakeSwap, Ontology, and The Graph. In total, 8 of these projects has a market cap of more than $1 billion. This growth is what has helped Binance Coin grow to become the third-biggest cryptocurrency in the world.
The BNB price also surged as investors reacted to the latest NFP data. As I have written before, there are odds that the Federal Reserve will continue to maintain low interest rates and quantitative easing (QE) as it tries to fuel the recovery. Low interest rates and QE are positive for Binance Coin and other digital currencies since they tend to devalue the dollar.
The four-hour chart shows that the BNB coin has been in a strong upward trend and is currently at its all-time high. The currency has also formed an ascending channel that is shown in black. It is currently at the lower side of this channel. Further, the upward trend is being supported by the 25-day and 15-day exponential moving averages (EMA).
Therefore, this upward trend will likely continue as bulls target the upper side of the channel at $730, which is about 10% above the current level. However, a drop below the resistance at $633 will invalidate this prediction.
Please don’t consider this investment advice. Views expressed here are those of the writer and the writer and InvestingCube will not be held liable for any losses.
Follow Crispus on Twitter.
