The Binance Coin (BNB) price is crawling back after falling to $241 yesterday and being overtaken by Cardano (ADA). BNB is trading at $273, which is 13% above the lowest point yesterday. Its market cap has jumped to more than $42 billion and is the fourth biggest crypto in the world.
What happened: The Binance Coin is an integral part of the Binance Ecosystem. It is the native currency of the fast-growing Binance Chain and is mostly used to pay fees in the Binance exchange.
Therefore, to some extent, its price is correlated with the overall performance of the crypto industry. In the past few years, other cryptocurrency exchanges like Crypto.com, Huobi, and NFX have also launched similar native tokens.
The Binance Coin price is rising today as part of the overall cryptocurrencies rally after the latest decision by the Federal Reserve. In its statement yesterday, the Fed pledged to keep interest rates and quantitative easing policies intact. This means that the unlimited flow of liquidity will continue even as the economy continues to rebound.
The Binance Coin price rose to $277 in the overnight session. On the four-hour chart, the price is above the ascending trendline that connects the lowest levels since February 23. It has also moved above the short and medium-term moving averages (MA). It is also about 20% below its all-time high of $348 and 14% below the highest point in March.
Therefore, in my view, the BNB price will continue rising as bulls target the March high of $315. If it moves above this level, it will open the possibility of it retesting its all-time high.
However, a drop below this week’s low of $240 will mean that there are still sellers left in the market. It will open an opportunity for the price to drop to $200.
