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BNB Price Prediction: Will it Reach $300?
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Short-term sentiment on BNB is bearish after the coin lost the $240 mark
Key Insights:
- BNB’s price has fallen below the 20-day exponential moving average.
- The token has risen by almost 10% since the beginning of the week.
- BNB ranks 5th in the list of cryptocurrencies worldwide by market capitalisation at $36.9 billion.
BNB, the ERC-20-compatible token of the Binance exchange, has risen by almost 10% since the beginning of the week.
However, its failure to rise to the 50-day simple moving average (SMA) led BNB‘s price to fall below the 20-day exponential moving average (EMA). Indeed, if the price stays below the 20-day EMA, Binance Coin could drop to the $211 support level.
Users can rely on BNB to pay for goods and services, settle transaction fees on Binance Smart Chain (BSC) and participate in exclusive token sales. The coin features an auto-burn mechanism that adjusts the amount of BNB to be burned based on price and the number of blocks generated on BNB Smart Chain during the quarter.
Price Action
BNB started its journey on July 28, 2017 at $0.1041. The token gained an astonishing 1,344% in 2021, compared to a 73% increase for Bitcoin (BTC) and 455% for Ethereum (ETH) that same year.
In fact, Binance Coin rallied from around $30 in January 2021 to an all-time high (ATH) price of $683.82 in early May.
However, the recent market crash saw BNB plummet to $216.36 on May 11 this year, which represented a 20% decline in a single day. Last month, on June 13, the coin also lost over 10% in one day when it was trading at $217.16.
On July 10, BNB’s chart showed the formation of an ascending triangle with the base of the triangle being a resistance level at $248.8. Technical indicators over the next few days indicated that BNB could have breached this level. For example, the 9 moving average (MA) line was attempting to break away from the 20 MA which represents the early stages of a bullish trend.
The token’s relative strength index (RSI) line was also sloped towards overbought territory, which is another indicator of potential bullishness.
BNB is currently trading at $226.54 and ranks 5th in the list of cryptocurrencies worldwide by market capitalisation at $36.9 billion. Its price is up 1.87% in the last 24 hours. Since Binance Coin has lost the $240 mark, a false breakout is likely.
Technical Indicators
Technical analysis shows that short-term sentiment on BNB is bearish, with 9 indicators displaying bullish signals compared to 21 bearish signals at the time of writing.
The daily simple and exponential moving averages are giving a sell signals, while the relative strength index stands at 43.8.
An RSI reading of 30 or below indicates an oversold or undervalued condition, while a reading above 70 would suggest the asset is becoming overvalued or overbought.
In terms of a Binance Coin price prediction, BNB could see its price rising to $276.836 by August 2022, reaching $573.191 in January 2024 and increasing to $782.438 by January 2025.
About the Author
Mohadesa Najumiauthor
Mohadesa Najumi is a British writer who has worked within crypto, forex, financial technology, and the stock market industry. Mohadesa received her MSc in Political Science and International Relations at the University of Amsterdam.
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