Binance’s fractal which previously sent BNB skyrocketing by 290% has showed up again and made the coin enter the group of very few gainers as the rest of the high-cap crypto assets corrected lower so let’s read more in today’s Binance coin news.
Binance coin trades inside a medium-term ascending parallel channel and its exchange rate climbed to 13.47% and is now trading at $40.69 which is a level only a few basis points below the all-time high of $43.15 from 2019. It seems that the traders have flocked into the Binance market to seek safety from XRP after it was hit hard with a lawsuit by the Securities and Exchange Commission. XRP lost more than 60% of its value since the lawsuit was launched.
It’s not clear why traders chose BNB when other bullish coins like BTC or ETH were also available as hedging alternatives. However, from the look of it, capital inflow into Binance picked up the momentum after the exchange CEO Changpeng Zhao announced that they will launch a new project in 2021. The chances of BNB hitting a new all-time high are increasing as the token hinted that it is bottoming out against BTC, but it cound enter the group of the few gainers on the market soon.
The BNB/BTC exchange rate also reached a classic support area with the pair rebounding off the rectangular price floor and also Binance’s fractal which sent BNB skyrocketing by 290% came back. This is partly because of the BTC overbought status and the number one cryptocurrency rally pushed the prices up from the late $10,000 to $24,000. In the meantime, it raised the chances of a possible sell-off so this scenario leads to traders looking for hedging the assets inside the crypto space, benefiting coins such as BNB, and the other few gainers that did well over the past few days and weeks.
So excited about 2021. A few big products launching next year. Projects kicked off internally already. 😎😉
— CZ Binance (@cz_binance) December 28, 2020
The pair weekly RSI is at 32 which places the pair in the ideal accumulation zone with the traders increasing long exposure on BNB against BTC with the Fib levels in the chart serving as potential upside targets. In the meantime, Changpeng Zhao noted that BNB could achieve similar results on the market in the next fractal:
“BNB’s ATH in the Dec 2017/Jan 2018 run was $24 (when BTC made $19700).BNB had since broken that ATH in July 2019 ($39), before BTC made a comeback. It now looks like it’s going for it again.”
The weekly RSI for the pair is set above 70 reflecting the overbought status in the medium-term which amounted to a downside correction as well.
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