BNB price consolidates: What should you do now?
Binance is the largest crypto exchange in the world, and BNB is the native token that is used for trading and paying fees on the platform. The trade can be placed using BNB, USD, ETH, USDT, and many other stablecoins, but users receive discounts in transactions with BNB.
The Binance Coin was created in 2017 on the Ethereum blockchain ERC-20 token, but later Ethereum switched to its own blockchain called Binance Chain. Now BNB is running on Binance Chain. BNB coin can be used in the following ways:-
- It can be traded with other cryptocurrencies.
- It can be used to pay fees on the Binance exchange.
- BNB is a form of payment on Crypto.com, where it is also used for crypto credit card bill payments.
- BNB is used to book flights and hotels on different websites.
- Users can treat it as an asset for long-term gain.
- BNB can be used as collateral for loans.
There is a wide range of use cases for this leading altcoin. Developers and marketing teams are working to extend their use cases further.
The Binance development team is also working on maintaining the demand and supply of this coin. On the whitepaper, they mentioned using 20% of its profit to buy back and burn Binance coins every quarter. This approach from the authority maintains the limited supply of this coin, making it more valuable in the long term.
That means you can treat it as a safer asset because it is a native token of a leading crypto exchange. If you are interested in investing in BNB, read our technical analysis.
BNB has a sideways pattern on the daily chart. While writing, BNB was trading around $268, which is short-term support for this coin. In the last three months, the price has been consolidating between $300 and $260, so we think it is an ideal time to buy BNB coins for the short term.
The BNB candlesticks are forming in the lower Bollinger Bands, and most other technical indicators are neutral. We do not think it will break the support of $300, but you should always read our detailed BNB coin predictions before investing.
After taking support from around $220, the BNB coin is bullish for the long term, but now it has been consolidating around the baseline of the Bollinger Bands. Most other technical indicators, such as RSI and MACD, are reflecting bullishness for the long term. Indeed, you can accumulate some coins so that if it breaks the support, you can accumulate more to average the price.