Binance coin, BNB, the token of the China-based cryptocurrency exchange, led the market on Wednesday with a 9% gain versus the USD by the end of the New York trading day. Against the consolidating Bitcoin, it hit an all-time-high level during the trading day, before erasing some of the gains. The sharp rally pushed BNB’s market capitalization to a five-month high of nearly $1.9 billion, making it the 17th largest cryptocurrency by market capitalization.
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Why the Love for Binance Coin (BNB)?
Users on the international, multi-language Exchange can receive a 50% discount on trading fees by paying with the BNB token.
One reason for the sudden surge of crypto exchange tokens such as Binance and Huobi in an otherwise gloomy market could be the liquidity they offer.
The market seems to be learning that these exchange-based crypto-assets are basically a representation of the monetization of trading volumes. The majority of the market appears to agree that the trading volume could increase in the near future. Meanwhile the future value of major cryptocurrencies such as Bitcoin remains a mystery.
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BNB/USD Price Action
Looking at the BNB/USD chart, you’d notice that the pair has been trading within an upward channel after bottoming out in February 2018. It has also kept its position above the daily Ichimoku cloud since April. Wednesday’s gains brought the pair back up to a five-month-high, and 50% Fibonacci retracement level of 17.54. This could also be considered as a strong resistance. While we could still see pullbacks towards the lower band of the upward channel, the general direction of BNB seems to be up.
With that, a range-trading strategy could be advised to medium-term investors.
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