The BNB Coin Bears have Arrived; Will the Bulls Make a Comeback?

The Binance Coin (BNB) was initially created as an asset to be sold in Binance’s ICO, serving as a means for users to pay lower trading fees on the platform. However, it has since evolved into a crypto asset that can be held in compatible wallets off of crypto exchanges, allowing people to send it directly to others for payments or other purposes.

Binance also conducts quarterly burns of Binance Coins to eliminate them. It has been a continuous practice since 2017. On a technical level, the Binance blockchain has been merged to form the BNB Chain, which has been optimized for on-chain trading and is used for Binance’s decentralized exchange (DEX), among other things.

The BNB Chain is composed of the BNB beacon chain and the BNB Smart Chain. The BNB beacon chain is focused on BNB Chain governance for staking and voting by Binance Coin holders. The BNB Smart Chain serves as a consensus layer that is compatible with the Ethereum Virtual Machine and has hubs for multi-chains.

Technical Analysis & Prediction of BNB Coin Price 

At the press time, the BNB coin price is trading at $247. The value of the coin has decreased since yesterday. From a technical standpoint, BNB’s rate is currently trading in consolidation, gathering momentum for a potential move. The current scenario suggests that the coin price will continue consolidating in the $222-$271 range for the next few days. 

The bulls are finding it difficult to push the price above the overhead resistance at $267. In addition to this, there is also a 2nd resistance which is at the level of $313. The bulls are at a critical level as they are taking support from the 50-day and the 150-day EMAs.  

Therefore if the price drops below the moving averages, it may indicate that the bulls are losing their control over the market. That could lead to a fall in price to the strong support at $205. Moreover, if the BNB bulls took the support from the EMAs, they can shoot up to the long wick of the candle of 21 November. 

Conclusion

Binance Coin (BNB) was created for Binance’s ICO and to pay lower trading fees. Binance conducts quarterly burns to eliminate them. BNB’s price struggles to rise above $267 and there’s a second resistance at $313. Bulls are at a critical level.

Technical Levels

• Support Levels: $225 and $205.
• Resistance Levels: $267 and $313.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.

Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.