Will Binance Coin (BNB) Follow Ethereum’s Chart Patterns? Let’s Dive In!
Did Binance Coin (BNB) mimic Ethereum’s chart patterns, or is it only a random occurrence? Should you concentrate on adding BNB, the native token of the world’s largest crypto exchange, to your portfolio? Let’s explore more to search out out!
BNB’s Explosive Growth and Recent Developments
After delivering a powerful 1,700% surge from January to May 2021, BNB looked as if it would slip under the radar. Investor concerns arose amid regulatory scrutiny and Bitcoin’s downward trend—a scenario that typically spells trouble for altcoins. However, post-May, BNB rebounded, gaining over 190%, and its chart appears ready for potential all-time highs. With the Bruno upgrade on Binance Smart Chain and the influx of capital fuelled by the meme coin frenzy, could BNB be gearing up for one more leap?
Examining the Daily BNB/USDT Chart
On the every day chart for BNB/USDT, a robust bullish market structure is obvious, with a series of upper highs and better lows (highlighted in blue) remaining unbroken. This suggests that prices might proceed climbing unless there’s a every day close below the recent higher low at $511. Currently, BNB is consolidating at a support level just beneath a supply zone, indicating potential accumulation before one other upward move.
This pattern is somewhat paying homage to Ethereum’s chart before it made its big push to recent highs. Similarities between BNB/USDT and ETH/USDT include an initial rejection, followed by a retest and reclaim of a support level, potentially setting the stage for further upward momentum.
Weekly Analysis: BNB’s Path to Higher Prices
The weekly chart for BNB also looks promising, even though it must flip the provision zone to unlock higher price levels. Historically, prices have wicked above all-time highs only to retract, trapping those chasing the breakout. Should BNB flip this zone, the subsequent goal is $875, aligning with the 1.382 Fibonacci level.
Comparing BNB to BTC and Other Exchange Tokens
While the BNB/USDT chart is insightful, comparing BNB with BTC is crucial to evaluate its potential to outperform the leading cryptocurrency. The BNB/BTC chart shows a break from a protracted downtrend, suggesting a bullish structure. However, excitement ought to be tempered until the primary supply zone is flipped, as BNB currently oscillates between support and resistance.
BNB, as Binance’s native token, competes with other exchange tokens like FTX (FTT) and KuCoin (KCS). Since February, BNB has outperformed FTT, which is nearing recent lows. Although KuCoin recently outperformed BNB, it faces an important resistance level. Thus, until these dynamics shift, BNB stays a robust contender.
Market Outlook and External Influences
While the evaluation suggests potential recent highs for BNB, its trajectory heavily relies on Bitcoin’s performance. Historically, December sees Bitcoin and Ethereum averaging 16% returns, often dragging altcoins like BNB along. However, with BTC in a bearish structure, there is a risk of sellers dominating, which could pull BNB down as well.
BNB is a cornerstone of the Binance ecosystem, backed by a strong team and diverse use cases. It has been in an uptrend since late September, consolidating near all-time highs on the USDT pair. This consolidation suggests a possible test of those highs soon. However, the BNB/BTC pair stays in uncertain territory, with price caught between support and resistance.
Conclusion
BNB is poised to proceed outperforming competitors like FTX and KCS, given FTT’s decline and KCS’s resistance. However, Bitcoin’s influence can’t be underestimated. If BTC’s downtrend continues, it could drag BNB down with it.
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