The cryptocurrency created by Binance, BNB, is standing out in the crypto market, thanks to an isolated rebound in its price, even achieving a new all-time high against Bitcoin.
At the time of writing, BNB is trading at $305.04. Accumulate a gain of 3.76% in the last 24 hours, and 14.20% in the last 7 days. With a capitalization of $49.451 million, it is the 5th largest cryptocurrency in the market.
BNB was a better short-term bet than Bitcoin
It is not a minor fact that BNB has set a new high against the crypto market leader.
Investors who chose to invest in this cryptocurrency, instead of Bitcoin, can now see the best fruits of this decision.
The Binance-created coin is now trading at 0.01335 BTC, breaking above a resistance that left the previous all-time high of 0.01235 BTC.
BNB had already been showing the intention to continue its bullish trend against Bitcoin, making continuous higher lows, while the price rested in a pennant-shaped sideways range.
We are now seeing a resumption, which while it seems successful, still does not show enough volume to be too confident. If in the short term, BNB goes back into the range, then it could be a false breakout.
The reasons behind the isolated rally
The exact catalyst behind the recent rally is unknown, however it appears to be due to the strong fundamental foundation that the BNB network possesses.
According to data provider Coin98, BNB Chain currently holds a total of 178 million addresses, and has grown 42% year-to-date.
It is the 2nd network with the most addresses, only below Ethereum, which has 202 million; a figure, moreover, quite close to that of BNB.
In addition to this, BNB Chain has the DeFi application that, by far, is the one with the most active users. In the last 30 days, PancakeSwap has had more than 2 million users using their platform.
Amidst a time of lackluster market sentiment, an Ethereum network that remains expensive for the average user, and other blockchains suffering outages and attacks, BNB’s strength draws attention.
BNB price analysis against the US dollar
On the weekly chart of BNB vs USDT, we can see that the price has been steadily breathing higher, having made a low of $183.4, respecting a very important demand zone.
To confirm the start of a broader rally, the resistance at $320 must be broken with determination.
If it doesn’t happen soon, then we could see some fresh selling in the short term, perhaps looking for the big support zone around $200.
From this time frame we see why BNB has outperformed Bitcoin, as it has been developing, without much hiccups, a clear short-term uptrend against the US dollar.
With continued higher lows and higher highs, BNB eyes the important resistance at $320 as its next target. At the moment there is a good chance that it will make it through, however, the low volume tells us that there is not much buying interest yet.
In case the ascending line that has been respecting the price is lost, then the recent rally would lose its relevance.
All our publications are of an informative nature, so in no case should they be accepted as investment advice.