Binance Coin (BNB / USD) emerged as the best-performing asset among the top ten cryptocurrencies this week as traders measured its potential through a series of adoption-friendly updates.
The fifth largest cryptocurrency, which serves as the settlement sign for the Binance exchange and its other companies, hit a new record high of $ 196.96 during Thursday’s early European session. The net profit this week was around 45 percent. Due to the upward movement, profit rose to an astonishing 434 percent since the beginning of the year.
Binance Coin has risen nearly 3,000 percent since its nadir in mid-March last year. Source: BNBUSD on TradingView.comBinance Coin is up nearly 3,000 percent from the nadir seen in mid-March last year. Source: BNBUSD on TradingView.com
Binance coin market gains came after Bitcoin hit a new record high of $ 52,640 on Coinbase and began a correction thereafter. So, it appears that traders flocked to the BNB after expecting a more extensive downward correction in the Bitcoin market. While the Bitcoin sell-off was modest, that didn’t stop the BNB from jumping into the Wednesday and Thursday sessions.
Binance Coin seemed like a more attractive choice for traders when it came to revising Bitcoin down. First, they noticed a dramatic increase in transactions with Binance Smart Chain, a blockchain that enables smart contracts to be created and the staking mechanism for BNBs.
Many analysts found that the BSC community’s decision to cut gas tariffs from 15 Gwei to 10 Gwei resulted in many transactions on the network. Even so, even Binance CEO Changpeng Zhao admitted that he has no idea what caused the boom.
Binance smart chain transactions are increasing. Source: BscScan.comBinance smart chain transactions are increasing. Source: BscScan.com
It seems that many traders speculated that BSC’s Gwei fees would decrease in connection with the booming network load as a clue for a further introduction of the BNB. Earlier this month, rising Ethereum fees helped many of its competing blockchain projects hit record highs. These include Cardano, Avalanche, and Polkadot.
On the flip side, Binance Coin was already flying higher after Binance’s new ventures, including a decentralized exchange project and a valuation boom in the DeFi protocols carried out, including KAVA, Venus and Cosmos. BNB’s demand also increased due to Binance’s investments in promising blockchain projects, including the Polkadot-based Plasm Network.
What’s next for Binance Coin?
Technically, Binance Coin needs a downward correction.
Binance coin [almost] hits the triangle breakout target. Source: BNBUSD on TradingView.comBinance Coin [almost] hits the triangle breakout target. Source: BNBUSD on TradingView.com
BNB / USD appears to be extremely overbought at the moment, with the Relative Strength Indicator reading above 70. This usually causes an asset to correct lower values or consolidate sideways until the RSI neutralizes below 70. Should this happen, there is a risk that the BNB / USD rate will fall towards the 20 -4H moving average (green).
Conversely, a trend continuation could bring Binance Coin above $ 200 (to test the symmetrical triangle goal).