More than 100% accumulated in Binance coin profits in the last 7 days, and almost 700% so far in February, thanks to an upward momentum that seemed not to be exhausted.
At the time of writing BNB is trading at $ 275.10 according to exchange data ProBit.
If you want to know why it all happened, and what could come next, stay and read this post.
Thanks to these factors, Binance coin is totally bullish today
Behind such a rise there must be key factors, and of course there are, in this case the main driving force is the large amount of capital that entered the Binance Smart Chain, in search of lower trading rates than those found on Ethereum.
Binance Smart Chain (BSC) is a chain compatible with smart contracts, used mainly to run decentralized protocols (DeFi), capable of coping with those found within the Ethereum chain, thanks to much lower transaction costs.
The volume of daily transactions on said chain even surpassed the large ETH network.
Binance coin works as the main vehicle within this network, even gas fees are paid in said crypto. Thanks to this, demand soared to exorbitant levels.
One of the main causes of all the hype within the BSC is the PancakeSwap protocol. This is in principle a decentralized exchange. He was recently able to dethrone who was a leader within that sector, Uniswap.
CAKE, the native token of this DeFi, also went to the moon with everything that is happening. Its price went from a minimum of $ 0.18 to a historical maximum of $ 21.45 in less than 3 months.
As well as this protocol, many more on the BSC are also fueling the bullish flame for Binance coin, and for now even though we may see a major pullback, I don’t think the bulls will completely disappear.
A fix is in process
Today we see how a daily candle develops lower, logically thanks to healthy profit taking after such a surprising bullish momentum.
On the daily time frame we see a clear uptrend, and immediate support is quite far away. I don’t think we even see a pullback towards that closer support, but we do think we could be seeing a deeper correction.
Either way so far it is nothing more than a healthy pullback, and as long as we don’t see too steep a drop, Binance coin will remain totally bullish.
On the intraday chart with 4-hour candles, we do see a clearer bearish intention, thanks to the break of the support at $ 288.89.
But I repeat, we are facing a totally normal correction, and even if we see it spread further, soon the bulls could regain control again.
In this time frame we see that the next support levels are at $ 198.91 and $ 168.26.
It is possible that we will see a search for some nearby support to pick up demand, but I do not think it is appropriate to be expecting too many falls at a time as extremely bullish as the current one.
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Analysis of the bullish case of Binance coin: what happened, and where it is headed