Binance Coin (BNB) Sees Parabolic Rise as Popularity of Binance Chain Grows
Binance Coin has been caught within the throes of a parabolic uptrend in recent weeks, with the price of BNB rocketing higher amidst a mixture of increased demand for the Binance exchange coupled with demand for Binance Chain.
This intense momentum has allowed the crypto token to form an incredibly strong weekly candle that will be closed later today, leading some analysts to expect significantly further upside.
One trader, in particular, is looking towards a continuation of this uptrend, explaining that it has allowed BNB to shatter a crucial technical resistance that was previously causing it to see an extended bout of range-bound trading.
The trader also notes that the strain the DeFi trend has placed on Ethereum is leading blockchain users to search for alternatives.
He notes that Binance Chain’s relative reliability may be one factor driving demand for BNB.
Binance Coin (BNB) Incurs Parabolic Momentum
At the time of writing, Binance Coin is trading up over 5% at its current price of $30.50, marking a massive rise from recent lows of $20.00 that were set just a few days ago.
The strong momentum that the cryptocurrency has seen over the past few days marks an extension of that which was first seen earlier this month when BNB’s price dipped as low as $18.20.
The decline to this price region sparked a massive buying frenzy, which ultimately resulted in its price rallying to highs of $32.00 that were set yesterday.
This marked a fresh yearly high, slightly above that of $26 which was set in late-February when BTC and the aggregated crypto market peaked.
This strength is showing no signs of slowing down, as the slight weakness seen by both Bitcoin and Ethereum today has done little to hamper its near-term outlook.
Analyst: BNB Breaks Crucial Resistance, Driven by Growing Demand for Binance Chain
While speaking about the cryptocurrency’s recent strength, one analyst explained that he believes much of this buying pressure is coming about due to the growing demand for Binance Chain.
This demand may be rooted in the lethargic transaction times, high fees, and high tx failure rate seen by Ethereum as of late due to the popularity of decentralized finance.
“The flippening is real, except it’s not with BTC and ETH. It’s with ETH and BNB. No failed transactions, transactions confirm in seconds, basically no fees, BSC is simply providing a far superior trading experience. There’s a reason it looks like this on the weekly IMO.”
Image Courtesy of ChaseNL. Chart via TradingView.
Binance Coin appears to be moving independently from the aggregated market, which may mean that it will continue outperforming BTC and ETH in the coming few days.
Featured image from Unsplash. Charts from TradingView.
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Cole Petersen, Khareem Sudlow