Key takeaways:
- In a previous BNB/USDT analysis, Ethereum World News had postulated that the coin would retest $14.
- Traders and investors had been advised to keep an eye out for any bullish news that might propel BNB further.
- Coincidentally, the exchange acquired Coinmarketcap soon after.
- The coin has a short term resistance at $15.50. Will it break this area and continue on its upward trajectory?
The news of Binance acquiring Coinmarketcap (CMC) was evidently bullish for Binance Coin (BNB) in the crypto markets. This event marked another inflection point for Binance and further cemented the exchange’s position as a heavy-weight in the crypto industry. With the acquisition of CMC, 2020 might just be a year of larger crypto projects absorbing smaller ones in a bid to extend their market share as well as offer users more products and services.
Binance Coin (BNB) Breaks $14
Before news broke of Binance acquiring CMC, Ethereum World News had mentioned the possibility of BNB regaining $14 based on both technical and fundamental analysis. In the analysis dated March 31st, Ethereum World News had asked traders to be vigilant with respect to any news related to the Binance exchange.
As with all technical analysis, it is advised to also keep your eyes and ears on high alert for any fundamental factors that may turn the tides. They include news developments regarding the exchange or positive news related to winning the war against COVID19.
BNB has, in turn, reacted positively to news of Binance acquiring CMC and the additional news of countries around the globe expressing optimism that COVID19 can be beaten.
Can BNB Zoom Past its Next Resistance of $15.50?
Without adjusting our March 31st Chart, we observe the following.
- BNB/USDT is valued at $14.73 at the time of writing this.
- Trade volume has increased drastically since our last analysis.
- BNB/USDT broke the rising wedge (orange) we had identified last time.
- BNB/USDT broke the $14 resistance and went further to retest $15.50.
- Its current price is above the 50 (white) and 100 (yellow) moving averages, with the 200 (green) yet to be broken. This is bullish for the coin.
- MFI is on the high side, 82, indicating the coin is due for a cool-down.
- MACD is also a bit bearish further emphasizing BNB/USDT might experience a minor correction or sideways movement.
With respect to resistances, BNB/USDT has the following:
- $15.50
- $15.95 (0.618 Fib level)
- $16.33
- $17.52
Conclusion
With the above observations, we can conclude that BNB/USDT is about to experience a minor correction as seen through the MFI at 82. However, the drop in value might not be significant given the fact that Bitcoin has broken and maintained the $7,000. BTC has almost reclaimed all the losses of March 2020. Additionally, the team at Binance is constantly building the platform’s products and services. Therefore it is safe to assume $15.50 will be broken as Binance Coin (BNB) aims to reclaim $16.
(Feature image courtesy of Zakaria Zayane on Unsplash.com.)
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.