The Binance Coin price has moved into a price-discovery phase after it formed a long hammer pattern last week. After falling to a multi-month low of $209 last week, the BNB price is trading at $307. Its total market cap has retreated to about $51 billion, making it the fifth-biggest cryptocurrency after Bitcoin, Ethereum, Tether, and USD Coin.
Binance plays a pivotal role in the blockchain industry. It is the biggest cryptocurrency exchange that was valued at over $300 billion during its peak. The company also owns other useful assets in the industry. For example, it is the parent company of CoinMarketCap, the widely used analysis project. Binance also owns the BNB Chain, which is an alternative to Ethereum. Also, the developers built Binance USD, the giant stablecoin valued at over $18 billion.
BNB is the native token for the BNB Chain platform. This ecosystem has been shrinking in the past few days as investors remain concerned about the industry. Its DeFi ecosystem has seen its TVL crash from over $20 billion to about $8.8 billion. The Luna crash directly impacted this as investors worried that they could lose all their cash. Similarly, gaming and NFT platforms have seen their activities wane recently.
Like many other cryptocurrencies, the BNB price formed a long hammer pattern last week. This hammer pattern is usually one of the most accurate reversal patterns in price action analysis. However, this week, the coin has been in a consolidation phase. As a result, the pair has moved slightly below the 23.6% Fibonacci retracement level on the daily chart, while the Relative Strength Index (RSI) is pointing upwards.
Now, with the Nasdaq 100 futures rising, there is a possibility that the coin will keep rising. If this happens, the next key resistance level to watch will be at $350, which is about 14% above the current level. However, a move below the support at $288 will stop the bullish outlook.
This post was last modified on May 20, 2022, 08:09 BST 08:09