Binance’s native token BNB was one of the few winners on Tuesday as the rest of the high-cap cryptocurrency assets corrected lower.
Binance Coin trades inside a medium-term ascending parallel channel. Source: BNBUSD on TradingView.com
The BNB / USD exchange rate climbed to 13.47 percent to $ 40.69, a level that was just a few basis points lower than the pair’s all-time high of $ 43.15 since June 2019. It looks like traders are flocking came to the Binance market. to seek safety with XRP, a Ripple-backed token that has lost more than 32 percent of its value in the past 24 hours.
It is not clear why traders chose BNB even when other bullish tokens such as Bitcoin and Ethereum were available as hedging alternatives. But it appears that capital inflows into the Binance market gained momentum after exchange CEO Changpeng Zhao announced they would launch new projects in 2021.
So excited about 2021. A few big products to launch next year. Projects have already started internally. 😎😉
– CZ Binance (@cz_binance) December 28, 2020
All time low
The likelihood of BNB hitting an all-time high in the dollar-pegged market increased as the token hinted that it will bottom out against Bitcoin.
Binance Coin tests a classic support area for a potential long-term rebound. Source: BNBBTC on TradingView.com
The BNB / BTC exchange rate reached a classic support area as shown in the chart above. The pair bounced off the rectangular price floor this week, reiterating the start of a fractal that last saw prices soaring by nearly 290 percent.
That’s partly because Bitcoin’s overbought status. The latest rally of the flagship cryptocurrency pushed prices up from $ 10,000 to as much as $ 24,300 this month. Meanwhile, it also opened up the possibility of massive whale sales. Such a scenario often leads traders to look for hedging assets in the crypto space, benefiting coins such as BNB.
BNB / BTC’s weekly RSI is 32, which puts the pair in an ideal accumulation zone. Therefore, traders may want to increase long exposure on BNB versus BTC, with the Fibonacci levels in the chart above serving as potential upward targets.
BNB / USD
Meanwhile, Mr. Zhao noted that BNB could achieve similar results in dollar-linked markets.
BNB’s ATH in the December 2017 / January 2018 run was $ 24 (then BTC earned $ 19,700), ”he said. “BNB had since broken that ATH in July 2019 ($ 39), ahead of BTC made a comeback. It now looks like it is going again. “
The weekly RSI on the BNB / USD charts was above 70, reflecting its overbought status in the medium term. That amounted to a downward correction.