Although Bitcoin has experienced a sharp decline, the price of Binance Coin (BNB) has shown a very strong trend and has not been dragged down with Bitcoin.
After reaching a high of $333.71 on February 19, BNB has been in trading sideways for most of the time. On April 6, the cryptocurrency set a new record high of $422.08.
During this bull market, BNB has risen at an astonishing rate. From early February to now, BNB has risen by more than 750%, going from lows of $45 to hit $400.
The amazing rise of BNB is mainly due to the increasing popularity of Binance’s blockchain- Binance Smart Chain (BSC).
Due to the high gas fees on the Ethereum network, the cost for traders and DeFi users to transact on Ethereum is pretty expensive. In many cases, the transaction cost is higher than the transaction amount itself, which prompted traders and some Defi protocols to migrate to BSC or create cross-chain support.
Binance Coin (BNB) Price Analysis
Source: BNB/USD Daily via TradingView
Binance Coin (BNB) was originally developed as a discount token for Binance Network and has grown to become the third-largest digital asset.
BNB is currently in a strong upward trend. The bulls are trying to pull the price back to the previous breakout level of $400. At the time of writing, BNB is trading at $400.88.
The rising of the moving average and the bullish MACD index show that the bulls are firmly in control. And when looking at BNB’s trading volume, today’s trading volume is higher than yesterday’s and there is a high probability that it will surpass the trading volume on April 6. This indicates that the bulls are very strong and a new all-time high may soon be in the horizon for BNB.
If the buyer can flip the $422.08 to a support level, then the BNB/USD currency pair may start the next phase of an uptrend, targeting the $500 level.
On the other hand, if the price fails to break through the resistance level of $422.08, it indicates that more investors have not entered the market, and BNB/USD will drop to the support level of $333.71. But this support level is not strong. If a large number of sell orders are triggered, then BNB/USD will likely retest the 20 day-Exponential Moving Average of $321.40, its next support level if BNB fails to withhold above $333.71.
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