Binance Coin (BNB), the native token of Binance crypto exchange, posted up to 22% gains Tuesday as it entered the top ten crypto index.
The Binance-to-Dollar rate (BNB/USD) established its intraday high at 8.788 at the European session open. Earlier today, the pair opened at 7.158 as a part of its previously ongoing rally. On January 31, the BNB/USD was trading as low as 6.079, which brings the pair’s weekly gains up to 44.5%.
From a technical perspective, BNB/USD was previously trending lower inside a falling wedge formation. Ideally, as the wedge contracts and volume begins to go down, the underlying asset attempts a breakout action to the upside. On December 2, 2018, Binance Coin daily volume started picking up momentum after months of low trading activity. As it did, the price started to climb while setting its upside target towards the falling wedge’s resistance trendline.
On January 15, BNB/USD cleared itself through the resistance level and went inside the “false breakout” area. The surge which is taking place today is clearly happening inside the same area. It means that Binance Coin could still correct lower unless it establishes a stable support level – somewhere above $9.509.
Strong BNB Fundamentals, Meanwhile
The Binance Coin surge follows events unfolding inside the Binance Launchpad space. Earlier in January, the token launch platform successfully completed the token sale of BitTorrent’s BTT – in just 15 minutes. It also hosted an airdrop round of 5,000 BTT to all investors who were eligible but could not participate in the main sale.
And now, Binance confirmed the launch of yet another project on the Launchpad platform. Dubbed as Fetch.AI, the project supports an economic internet model powered by artificial intelligence, machine learning, and blockchain. According to Binance weekly report, their Launchpad platform would host the Fetch.AI token sale, which will begin on February 25.
— Binance (@binance) February 6, 2019
The situation is reminiscent of Ethereum, a blockchain platform whose native token Ether powers ICO projects. Traders expect that the demand for BNB tokens would increase same as Ether. Hence, the coin is appearing attractive in near-term. But whether or not the Launchpad projects fare well would decide the underlying valuation of BNB tokens – in the long-term.
Other Top Coins
In contrast, other top coins performed poorly on Tuesday. Bitcoin, the leading cryptocurrency by market cap, posted 1.52% losses on a 24-hour adjusted volume. While Ethereum and Ripple also maintained losses in the 2-3% range, Binance Coin and Litecoin lost the most after dropping more than 4% in a day.
Featured Image from Shutterstock. Price Charts from TradingView.