Is BNB ready to begin a rally to overcome its resistance?
BNB, the native cryptocurrency of the Binance exchange, has a tokenomics model focused on creating a decentralized exchange ecosystem. BNB is used as a means of payment for various fees on the Binance platform, such as trading fees, withdrawal fees, and listing fees. Binance uses a portion of its profits to buy back and “Burn” BNB, which reduces the overall supply of the token and helps to increase its scarcity.
In addition to its use on the Binance exchange, BNB is used as a payment method for goods and services on various other platforms and applications within the Binance ecosystem, such as Binance Launchpad and Binance DEX. This creates additional demand for the token and helps to drive its growth and adoption. Overall, the tokenomics of BNB are designed to create a strong incentive for users to hold and use the token.
If the platform continues to gain popularity and expand its user base, it could increase the demand for BNB, which could drive up its price. Binance has also been actively expanding its ecosystem and building new services and products, such as Binance DEX, Binance Launchpad, and Binance Academy, which could also contribute to the growth potential of BNB.
BNB has re-taken its previous market capitalization of $48,785,056,344 as its value reached $300 on a whim. Currently, a previous rejection level is creating a hindrance to the further uptrend possibilities of BNB. Will BNB break the consolidation and continue to rise? Click here to know!
Candlesticks tell a story no physical description can ever provide. Here a resistance can be seen developing near the $319 range since the first significant decline of BNB in April 2022. The buying sentiment from its lows helped prices consolidate near $300, but profit booking was a consistent attribute of this price band.
While there were some attempts to breakout towards $400, the results were always negative. In such an instance, where the token has already overcome the price action-based resistance of 100 and 200 EMA while still failing to rally above its resistance zone, it highlights a possibility of the drop of a buying spree.
While this theory can also be confirmed by the bearish crossover of MACD, and the drop in RSI value from 75 to 58, the easing price rally would create the perfect scenario for an uptrend of BNB. 200 EMA should act as a strong support level to incite buyers into taking solid actions. On weekly charts, too, BNB is facing some resistance, but a breakout could be right around the corner. The trending values of BNB have created an upside that could push a strong rally if prices manage to breach $400 on the current swing.