Binance Coin Price Analysis – 1st March 2021
Both the BNB/BTC and BNB/ETH charts show bullish trend metrics with prices above their respective 200-day EMAs and daily Cloud. Any higher highs on both pairs will likely be met with high timeframe bearish divergences, suggestive of weakening bullish momentum.
The Binance Coin (BNB) market cap currently stands at US$39 billion with US$3.7 billion in trade volume over the past 24 hours. BNC is ranked 3rd on the Brave New Coin market cap table. The BNB price is down 6.45% in the last 7 days, but up 430% in the last month.
About Binance Coin
The Binance Coin ICO ran from July 1st, 2017 to July 21st, 2017, where 100 million BNB tokens were sold, raising US$15 million with a token price of US$0.15. Notable investors and advisors included Matthew Roszak, Roger Ver, Chandler Guo, Zhao Dong, and Da Hongfei.
BNB has a capped supply of 200 million tokens, with 50% sold during the ICO, 40% going to the founding team, and 10% going to angel investors. The team funds have a vesting schedule, where 20% of the 16 million tokens were initially released and a further 20% will be released annually for the subsequent four years after the ICO.
Binance Coin provides access to features on the Binance exchange. The use cases for BNB ensure users remain in the closed garden ecosystem of Binance, which includes; Binance.com, Binance.US, the Binance DEX, Binance Launchpad, BEP2, and margin trading.
While BNB was initially an ERC-20 token, migration to the Binance Chain (BEP2) took place in late April 2019. According to the whitepaper, the funds are allocated for the following; 35% for building the Binance platform and performing upgrades to the system, including team recruiting, training, and development; 50% for Binance branding and marketing, including continuous promotion and education around Binance and blockchain innovations; and 15% is kept in reserve as an emergency fund.
One unique aspect of BNB token management is burning events that take place every quarter. Tokens are acquired for burning through exchange fees, OTC markets, or sold on the market and bought back later for the burn.
Technical Analysis
Roadmaps for future market movements can be found on high timeframes using Exponential Moving Averages, Volume Profile Visible Range, Pivot Points, Ichimoku Cloud, and divergences. Further background information on the technical analysis discussed below can be found here.
On the BNB/USD daily chart, the 50-day and 200-day Exponential Moving Averages (EMAs) have been bullishly crossed since late July 2020. Both the 50-day EMA, at US$140, and 200-day EMA, at $65, should now act as support. Very little volume support (horizontal bars) exists until the US$22 zone, with support in the US$12-16 zone and the US$10 zone.
Turning to the Ichimoku Cloud, four metrics are used to indicate if a trend exists; the current price in relation to the Cloud, the color of the Cloud (red for bearish, green for bullish), the Tenkan (T) and Kijun (K) cross, and the Lagging Span. The best entry always occurs when most of the signals flip from bearish to bullish, or vice versa.
Daily Cloud metrics, with doubled settings (20/60/120/30) for more accurate signals, are currently bullish; the spot price is above the Cloud, the Cloud is bullish, the TK cross is bullish, and the Lagging Span is above Cloud and above price. The trend will remain bullish as long as the spot price is above the Cloud. Kijun support currently sits at US$200.
Both the BNB/BTC and BNB/ETH charts show bullish trend metrics with prices above their respective 200-day EMAs and daily Cloud. Any higher highs on both pairs will likely be met with high timeframe bearish divergences, suggestive of weakening bullish momentum. Support for the BNB/BTC pair, based on Cloud, yearly pivots, and VPVR, sits at 0.004 BTC. Support for the BNB/ETH pair, based on Cloud, yearly pivots, and VPVR, sits at 0.1 ETH.
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