The Binance Coin price has had some modest gains in the past five straight days as the overall cryptocurrency industry bounced back. The BNB coin is trading at $313, which is about 35% above the lowest level in June. Other popular coins like Bitcoin, Ether, and Ripple have also risen.
Binance Coin is the native token for the Binance Smart Chain (BSC) network. This is a network that is relatively similar to Ethereum and Cardano in that it helps developers build decentralized applications. Some of the most popular apps built on BSc are Dai, PancakeSwap, and Mdex.
While BNB is the fourth-biggest cryptocurrency in the world, Binance faces several challenges. First, it was developed by Binance, an embattled exchange that is being investigated in several countries. The company does not even have a headquarter.
Second, the ecosystem plays a relatively small role in the decentralized applications industry. Indeed, most of the biggest DeFi, gaming, and NFT projects are built on Ethereum’s network. Finally, many developers have complained about the security issues in Binance’s ecosystem. That could prevent more developers from embracing the network. Advertisements
Still, the BNB price could keep doing well provided that Bitcoin too will perform well. This is notable because most cryptocurrencies have a close correlation with Bitcoin. Also, the coin could do well because of the strong brand recognition of Binance, which is the biggest exchange in the world. For example, its volume in the past 24 hours was more than $23 billion while that of Coinbase was more than $3 billion.
The Binance Coin price has been titling upwards recently. This is shown on the daily chart shown below. The coin is slightly below the 50-day and 100-day moving averages. It has also formed a symmetrical triangle pattern. A closer look at this pattern shows that it is fast approaching its confluence zone. The MACD, on the other hand, has formed a bullish divergence pattern. Therefore, there is a possibility that the price will soon bounce back higher. This view will be confirmed if it moves above the upper side of the triangle pattern and the two moving averages.