The Binance Coin price is attempting to bounce back. BNB rose from this week’s low of $253 to the current $280. This performance brings its total market capitalization to more than $47 billion, making it the third biggest cryptocurrency in the world.
Binance Coin news. Like all cryptocurrencies, the price of the Binance Coin crashed on Monday this week. This decline happened as the fear and greed index declined to a multi-month low as the number of Covid cases kept rising. As a result, virtually all assets like stocks and commodities declined sharply.
The current rebound is mostly because the fear of the Delta variant has eased. As a result, global stocks have bounced back, with the Dow Jones rising by more than 500 points on Tuesday followed by a 200 point gain in the futures market. Most importantly, Bitcoin has managed to move above $30,000, which is a signal that there are still buyers in the market. In most cases, there is usually a close correlation between the price of Bitcoin and that of altcoins.
Still, fundamentally, the Binance Chain seems to be struggling. Years after its launch, the number of projects being developed in the platform has not risen as expected. Today, the biggest projects in the network by market cap are Binance USD, Dai, PancakeSwap, and The Graph. These are the only ones with a market capitalization of more than $1 billion. In contrast, Ethereum has many projects valued at more than $1 billion.
The four-hour chart shows that the Binance Coin price has been in a consolidating phase recently. The coin is slightly below the black descending trendline that connects the highest points since June. It remains below the 25-day and 15-day moving averages. It is also below the lower line of the previous triangle pattern that is shown in black.
Therefore, I suspect that the current rebound does not have legs since it is a dead cat bounce or a relief rally. Therefore, I believe that the coin may keep rising as it does a break and retest pattern. This is where the price of an asset retest the previous key level and then resumes the downward trend. This view will be invalidated if the price moves above the resistance at $320.
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