Home CryptocurrencyAltcoins Binance Coin Sinks To New Lows

Binance Coin Sinks To New Lows

by Pragati Shrivastava

The price of Binance Coin has corrected downwards with negative 6.11% ROI in the past 24 hours. Since Bitcoin’s mighty fall on Tuesday, most altcoins including BNB suffered a bloodbath. Prior to Litecoin kicking off a 200% rally that pushed Ethereum and Bitcoin prices upwards, Binance Coin signaled the altcoin herds to rally forth this altseason. BNB is far ahead of the competition with an overall ROI of over 9000%. This rally was propelled by back-to-back Binance-supported initial exchange offerings, rising altcoin prices, and an improvement in general sentiment among investors who finally felt confident that the 15-month long bear market had ended.

[wlm_private “Crypto Trader Pro – Monthly|Crypto Trader Pro – Yearly|Crypto Trader Pro (Lite)”]

BNB has hit a snag and started a slippery slide downwards. It was when Binance announced that U.S. based users would be banned from its main platform and welcomed only on the regional Binance version that their trouble began. The sentiment changed as the media reported that the number of digital assets and pairings offered were far less compared to the original platform. During the last altseason BNB was leading the rally and now BNB is no longer immune to Bitcoin’s price action and it. It has entered a prolonged period of consolidation.

Long Position in BNB

Though there is disappointing news in the crypto world and the price is crashing, BNB has a lot going for it. Binance U.S. launched on September 24, 2019, and the platform currently lists BTC, ETH, XRP, BCH, LTC, BNB and USDT across 13 fiat-to-crypto and crypto-to-crypto trading pairs. The exchange also revealed that Cardano (ADA), Basic Attention Token (BAT), Ethereum Classic (ETC), Stellar Lumens (XLM) and 0x (ZRX) would be listed and deposits for these altcoins is open now.

A significant fact is that the native token is used to pay the fees for Binance’s Futures Trading platform. Two weeks ago, Binance announced that it would include all current and future BNB-based products and services in upcoming coin burns. This means BNB has an increased utility for paying trading fees and processing margin trades on the futures platform. This invariably increases the demand for the token.

Furthermore, there’s always the possibility that Binance.US will eventually use BNB for trading fees, staking, and lending. Binance has aggressive and ambitious plans for establishing decentralized exchanges across the globe, and BNB could make its way onto decentralized finance (DeFi) platforms like Celcius, Compound Finance, BlockFi, and dYdX.

For now, BNB is not predictable in the short-term and it is recommended to avoid shorting and short positions at the moment. Long positions are the way to go until we see further price movement.

BNB dropped below the psychological support level and a strong oversold bounce on the Relative Strength Index (RSI) resulted in a 12.95% bounce. Unless the market improves, the next stop for BNB could be at $13.60. A drop below $13.60 could see the altcoin drop to $9.40. A drop below $14 extinguishes purchasing demand until it hits $9 to $11. Though the RSI approaches oversold territory, there is still room to fall and reverse course.

If Bitcoin price enters a lengthy period of consolidation in the $8,000 to $9,000 range, it’s possible that BNB could drop further. Akin to other altcoins, BNB’s performance appears dependent upon Bitcoin’s recovery and altcoin traders might not have much to look forward to other than a strong oversold bounce within the altcoin market.

Content provided by CryptoTraderNews is for informational purposes only, and should not be construed as legal, tax, investment, financial, or other advice. All information is of a general nature. As always, there is risk with any investment. In exchange for using our products and services, you agree not to hold CryptoTraderNews Pro, its affiliates, or any third party service provider liable for any possible claim for damages arising from decisions you make based on information made available to you through our services.


Want to read the rest of the article? Join our pro-membership and receive all of the following:

✅Access to ALL content.
✅Access to the CTN editorial staff.
✅Access to our CTN trading dashboard.
✅Access to our exclusive telegram channel where all our pro-members and editorial staff are in. 
✅Ability to request content/research material!

Join now!

Related Posts