Binance Coin (BNB) Can Soar As Price Holds $13
Binance Coin (BNB) is trading higher against the U.S. dollar at the moment and holding above $13 as it seeks to make amends for the downtrend experienced in the last one week.
BNB lost about 20% of its value in the preceding seven days as the market saw a general decline across most digital assets.
The Syscoin (SYS) debacle also had a bearing, coming during a market downtrend.
Also worth noting is the fact that Binance Coin, as well as the parent exchange, has felt a bit of pressure from new ventures in the exchange space.
These new exchanges are attracting a lot of attention with their new business models, which includes new trading fee styles.
Such sites include the controversial FCoin exchange that boasts a new business model in the form of what it calls “trans-fee mining”.
Users pay fees in BTC or ETH but get reimbursed the full amount in FTs, FCoin’s native token.
The model has been termed as controversial by many in the cryptocurrency industry, including the Chinese media. In fact, Binance CEO Changpeng Zhao criticized the new model.
Other newer sites to introduce controversial models include Coinbene, Bit-Z, and CoinEx, all of which have at one point seen huge trading volumes that leading platforms like Binance.
Expected positivity from a cooling off on the regulatory front also failed to inspire sustained upsides and Binance Coin tanked like the rest of the market.
Weekend trading stops downtrend
The token traded at a high of $14.42 on July 9 according to data from CoinMarketCap. However, a series of declines saw its market price touch a low of $11 by July 14.
Weekend trading, however, brought new optimism and the token’s price gained by about 4% on July 15 to reach a high of $12.40, before correcting lower to close above major support at $12.29.
During intraday trading over the weekend, price gains corresponded with an increase in daily volume.
The overall daily volume increased from about $215 million worth of BNB traded on July 14 to over $263 million exchanged on July 15. It accounts for an increase of about 24% in 24 hours.
Binance Coin’s total market capitalization on July 15 was $1.41 billion after a total of $26.3 million worth of the popular exchange’s coin was traded throughout the day.
Binance holding up above $13
July 16, 2018, sees a single Binance Coin token currently trading just above $13 or 0.00204175 BTC, and 0.02876070 against ETH.
These values mean that the 16th ranked token has gained over 7 percent, over 6 percent and over 4 percent against USD, BTC, and ETH respectively in the last 24 hours.
The token appears to be consolidating higher and moving further into the green. At the same time, its 7-day price is now only 6 percent in the red, compared to nearly 20 percent by Thursday last week.
BNB could be having a great day if the early Asian hours trading momentum sustains into the European hours. The token has seen its value rise from $12.35 to a high of $13.31 before correcting lower to $13.30.
At the moment, BNB/USD is trading just above $13 and could see more upsides in the next day or so with positivity sinking in the markets.
The downtrend seems to be flattening out and the coin is holding well above $12. As it stands, there may be a bullish breakout building up.
The coin has a market cap of $1.47 billion and has seen a total of $38.6 million tokens traded in the last 24 hours.
Will Binance Coin burn affect prices?
Part of the positivity surrounding BNB may be from the anticipated coin burn, to be carried out probably on or around July 18th.
It’s not guaranteed that it will have an effect on prices, as previous ones did very little to spike value. But if it does, then the token will surge even further.
Binance CEO Changpeng Zhao has confirmed this on Twitter assuring the community that:
“Binance is doing a final tally on the numbers, and will announce our 4th quarterly burn in the next day or so, and finish the burn within a couple days after that.”