Binance’s native token BNB was among the few winners on Tuesday as the rest of the high-cap cryptocurrency assets were revised lower.
Binance Coin is traded within a medium-term rising parallel channel. Source: BNBUSD on TradingView.comBinance Coin will be traded in an ascending parallel channel in the medium term. Source: BNBUSD on TradingView.com
The BNB / USD exchange rate rose 13.47 percent to $ 40.69, a value just a few basis points below the pair’s all-time high of $ 43.15 as of June 2019. A ripple-backed token that has lost more than 32 percent of its value in the past 24 hours.
It’s not clear why traders chose BNB, even when other bullish tokens like Bitcoin and Ethereum were available as hedging alternatives. But it looks like the inflow of capital into the Binance market picked up after the exchange’s CEO Changpeng Zhao announced it would launch new projects in 2021.
So excited for 2021. A couple of great products coming out next year. The projects have already started internally. ??
– CZ Binance (@cz_binance) December 28, 2020
The likelihood of the BNB hitting an all-time high in the dollar market increased when the token indicated it was bottoming against Bitcoin.
Binance Coin is testing a classic support area for a possible long-term rebound. Source: BNBBTC on TradingView.comBinance Coin is testing a classic support area for a possible long-term recovery. Source: BNBBTC on TradingView.com
The BNB / BTC exchange rate hit a classic support area, as shown in the graph above. The pair bounced back from the rectangular floor this week, repeating the start of a fractal that recently saw prices soar nearly 290 percent.
This is partly due to Bitcoin’s overbought status. The latest rally in the flagship cryptocurrency raised prices from a late $ 10,000 to $ 24,300 this month. In the meantime, the possibility of massive whale sell-offs has also increased. Such a scenario often leads to traders in the crypto room looking for collateral that will benefit coins like BNB.
The weekly BNB / BTC RSI is at 32, which puts the pair in an ideal accumulation zone. Hence, traders could increase their long exposure to BNB versus BTC, with the Fibonacci levels in the graph above serving as potential upside targets.
BNB / USD
Meanwhile, Zhao noted that the BNB could achieve similar results in the dollar-linked markets.
“The ATH of the BNB in December 2017 / January 2018 was 24 US dollars (at BTC) made $ 19,700), ”he said. “BNB had since broken that ATH in July 2019 ($ 39) before BTC made a comeback. It now looks like it’s going to start again. “
The weekly RSI on the BNB / USD charts was above 70, reflecting the overbought status in the medium term. That was a downward correction.