Binance Coin (BNB) Could Be On a Path to Set a New ATH Thanks to DeFi
John P. Njui • BINANCE (BNB) NEWS • COIN MARKET CAP • DEFI • SEPTEMBER 12, 2020
Quick take:
- In the third quarter of 2020, Binance has dived dip into DeFi
- BNB can now be staked to earn 60% APR and new tokens through the Binance Launchpool
- Binance has also set up a $100M incubator fund specifically for DeFi projects
- Binance Smart Chain is also live on the mainnet
- All these events provide enough fundamentals for a Binance Coin (BNB) rally past its previous ATH if $39.57
A quick glance at the top 10 digital assets according to Coinmarketcap reveals that Binance Coin (BNB) stands out from the rest in terms of 24-hour gains. BNB is the only digital asset in the top 10 experiencing double-digit gains as can be seen in the screenshot below.
Binance Coin (BNB) Price Being Propelled by DeFi
A quick analysis of recent news surrounding the Binance crypto exchange provides the following reasons as to why Binance Coin (BNB) is thriving in the crypto markets.
- Binance recently launched BNB and BUSD staking at 60% and 50% APR respectively
- Binance launched its Launchpool allowing investors to earn new tokens, such as BEL, by staking their BNB
- 17.941 Million BNB ($484 Million) has been staked to farm Bella (BEL) tokens
- BEL farming will conclude on the 9th of October
- Binance has continually listed popular DeFi tokens
- CZ and the team at Binance have decided that DeFi is the way to go henceforth and are continually building
- Binance Smart Chain is live on mainnet
- Binance has set up a $100 Million incubator fund for DeFi projects
Binance Coin Could be On a Path to Break Previous ATH
Switching focus to the BNB/USDT chart, the above-mentioned fundamentals could provide the necessary momentum for Binance Coin (BNB) to push past its previous all-time high value of $39.57 set in June 2019.
Visiting the daily BNB/USDT chart courtesy of Tradingview, the following can be observed.
- The daily trade volume is in the green
- Price is above the 50-day, 100-day and 200-day moving averages confirming general bullishness by Binance Coin
- MACD has crossed in a bullish manner
- However, the MFI is high at 77 hinting of a pending correction or consolidation of Binance coin before another move up
- Current resistance levels before the ATH value can be found at $27.81, $28.57, $29.02, $30.67, $32.72, $34.18, $35.44, $36.41 and $37.95
- BNB’s path to a new all-time high will not be an overnight affair and will take time
Conclusion
Summing it up, the fundamentals surrounding Binance Coin are impressive and could provide the needed momentum for BNB to retest or break the previous all-time high value of $39.57. However, the rise of BNB to this level might not be overnight as the digital asset has plenty of resistance levels to overcome beforehand.
Additionally, BNB’s bullishness is also highly dependant on a stable crypto market led by Bitcoin which is very much correlated to the stock markets.
As with all analyses of Binance Coin, traders and investors are advised to use stop losses and low leverage when trading BNB on the various derivatives platforms.
Original article posted on the EthereumWorldNews.com site, by John P. Njui.
Article re-posted on Markethive by Jeffrey Sloe