Home CryptoCurrency News BNB News BNB Price Craters 14% after a Double Top Forms at $435

BNB Price Craters 14% after a Double Top Forms at $435

Binance, the exchange and the best-known product representing the vast Binance ecosystem, has announced the rebranding of the Binance Smart Chain (BSC) and the Binance Chain to BNB Chain and the Binance Beacon Chain, respectively. The BNB acronym meaning has also been changed to “Build and Build” from the Binance Coin.

As per an official statement on February 15, the change will highlight the critical role played by the BNB coin concerning the BNB chain and the broader Binance ecosystem.

The rebranding was also necessary, pointing at how BNB has transcended Binance’s use case. Going forward, the chain will support more intensive dApps in GameFi, SocialFi, and the metaverse, benefiting all users and developers.

The Binance Ecosystem Growth

In the last five years, Binance has grown to be a force in crypto. It has released a series of timely products, all malleable to cater to the needs of its growing community of users and traders.

Notably, the launch of the BNB Chain—an EVM compatible network supporting smart contracts—pushed the BNB into prominence. With DeFi users opting to deploy various yield maximization strategies from a cheap, high throughput network, the chain emerged as an option for most.

This migration to the BNB Chain propelled BNB’s valuation to the top-3, flipping Cardano and other high-profile projects. Meanwhile, Binance, the exchange, evolved to create CeFi, integrating popular DeFi products in their centralized platform, which guarantees security and zero rug pulls.

BNB Technical Analysis

BNB

The BNB coin is down 45 percent from 2021 peaks and less than $55 from H2 2021 lows—a critical support line, as per the candlestick arrangement in the daily chart.

So far, sellers have the upper hand and could see BNB further slide to new February 2022 lows if bears double down. Notably, following the formation of a double top from around $435—the immediate resistance line–, the odds of BNBUSDT dropping to January 2022 lows of approximately $330 remains high.

Aggressive traders can align their positions with the primary sell trend, unloading on pullbacks towards $410 with the immediate target at $330.

On the flip side, if there is a rejection of lower lows and prices recover from spot rates above $410, risk-averse traders must wait for a comprehensive break above $435 before loading the dips, targeting the January 2022 high of around $550.

Technical charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.


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Dalmas Ngetich
Dalmas is a very active cryptocurrency content creator and a highly regarded technical analyst. He has worked in various media as an analyst. He is passionate about blockchain technology, the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through writing about his knowledge and analysis of coin price charts.
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