BNB is still in the top-5 with more than twice the market cap of XRP, the sixth most valuable cryptocurrency.
As per the arrangement in the daily chart, BNB wasn’t spared the sell-off of last week. However, the good news is that BNB remains resilient, impressively soaking selling pressure of the past 24 hours and adding four percent versus the USDT.
Nonetheless, mirroring the general state of the crypto scene, BNB is down double digits week-to-date. Still, the resurgence in the tail end of last week points to strength and possibly, seller exhaustion—a net positive for confident bulls who were shredded after worrying free fall of early last week.
Binance is Indispensable in Crypto
The significance of Binance cannot be understated.
Since launching, the cryptocurrency exchange has expanded its offering to be a leading ramp with a presence in the U.S., as the largest by user count. It is also sufficiently liquid and has been crucial in ensuring the survival and liquidity of some crypto assets.
For instance, amid the collapse of LUNA, UST, and the Terra ecosystem, Binance and Changpeng Zhao, its CEO, provided guidance. Their intervention and advice to the Terraform Labs and Do Kwon has been, according to some observers, the reason why LUNA is one of the top crypto performers.
Beyond this, BNB Chain continues to grow and boasts an active DeFi, NFT, and metaverse ecosystem. With BNB as central, this activity has been bullish in driving the demand for the coin, buoying holders’ return on investment—a net positive.
BNB Technical Analysis
Last week, BNB dropped to $220 before recovering to spot rates. In the past few days, BNB has added an impressive 33 percent versus the USDT. All the same, it is still under immense selling pressure, reading from the performance in the daily chart.
Despite the pin bar of May 12 below the lower BB and confirmation in subsequent sessions, BNB is still within a bear breakout formation below Q1 2022 lows. The reversal from $220 coincided with H2 2021 lows—a critical reaction level. This could offer hope.
In a bear breakout formation, sellers may find entries on pullbacks towards January 2022 lows at $360 from a volume analysis perspective. Every high towards this level will comprise a retest if bulls fail to break back to April 2022 territory. A close above $360, on the other hand, would mark the end of the bear run, canceling the bearish preview. For aggressive sellers, the immediate target would be last week’s target of $220.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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