BNB Rises 12%, Watch for Retractment

Ankita  |  Feb 5, 2021

BNB is another currency to watch out for with an 12.6% increment within the last 24 hours. Trading at $59.58, the coin started last week on January 24, 2021 at a $41.2 level, rising slightly to $42 on January 25, 2021. January 26 and 27, saw it again falling to $40 levels and January 28 saw the rise to $42.3. Latter half of January 29 saw the increase happening to $43 to a steady uptrend thereon. The currency kept on increasing to $44 on January 31 and with no expected price pullback, BNB has grown to $47 on February 1 and 2. It steadily shot to $50 and with a spike in buyers and increase in the number of addresses buying BNB supported the growth in price.

Between February 2 to 5, the price has risen from $50 to $59 till today. This is a tremendous growth of 42.7$ since January 25.

BNB Price Analysis

What’s Driving BNB

Various cryptocurrencies have been seeing a high whale activity. Sentiments improving in the United States and Europe politically and economically seemed to have rallied off this stimulus. This bodes well for the cryptocurrency industry as well. Also, various Reddit groups have been responsible in moving the coin along with BNB’s own burning of Binance coin tokens worth $165 million, as a part of its 14th Quarterly BNB burn. The amount of BNB tokens to be burnt is determined by the trading volumes of the previous quarter. This way the exchange periodically reduces the coin’s supply.

The company has made a new announcement in response of PayPal with a similarly payment system called as “Binance Pay”.

How Do the Technicals Look

Till yesterday the prices were making a bullish flag pattern with possible pricing to $60. Today’s rise seems to validate that, though the whales seem to be in a consolidating phase, which means they are now booking profits and there could be a downturn in the 6 hour and 12 hour window. As per the fibonacci Retractment, there could be these major selling points - $52 at the 78.6% fib level and $47.23.

If BNB can hold on to a support level of $52.6 then there could be a bounce back at $60 and then $69.

 

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