The price of Binance Coin gained around 17% compared to Bitcoin (BTC) in July alone, which spells bullish for the price of the exchange and its IEO tokens. As the Bitcoin news showed slow consolidation over the past few months, altcoins have been taking the full spotlight.
For instance, recently we saw massive moves made by Chainlink (LINK), Ziliqa (ZIL) as well as Elrond (ERD) and these are only a few of the more popular altcoins in the news. In fact, ERD is an IEO (initial exchange offering) which means that investors’ eyes are automatically focused on BNB as a result.
Speaking of which, Binance Coin gained 17% compared to Bitcoin and as the price started moving, the IEO tokens followed suit. As shown on the chart below, this week we could see the BNB/BTC pair breaking above the 100-day and 200-day moving average. For many, this is a crucial breakthrough and one that spells a lot of details about a new rally.
As the daily chart shows below, the price of Binance Coin gained and made a double bottom structure, after which a slight rally occurred. Then, BNB tested the old support of 0.0016800 sats and with this level confirmed a minor downtrend breakout.
If the level sustains, it is likely to expect a test of the highs again, mainly because the price has tested the lows, lost the support and then reclaimed the support. So, if everything continues like this, the price of the coin could rise and the BNB/BTC pair first needs to break the range resistance for confirmation.
If BNB/BTC wants to start accelerating, it has to break the range resistance at the 0.0022500-0.0024000 sats level. Breaking through this resistance zone would allow a rally towards the peak high to occur.
All in all, Binance Coin gained a lot against Bitcoin and shows that while the parent exchange behind it is making good news lately, the Binance Coin news are also solid and positive, indicating that there could be a lot of updates moving forward. For the time being, all eyes are on Binance Coin and if it continues to push higher, the IEOs we mentioned above will most likely follow it.
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