Binance Coin price analysis 16 Feb: Is a rally to $500 likely?

Binance Coin could rally in the near term

Binance recently announced that its blockchain Binance Smart Chain (BSC) has been rebranded to BNB Chain, which stands, supposedly, for Build and Build. The BNB ecosystem will encompass the networks Binance Chain and Binance Smart Chain. According to the exchange, this separation of Binance and BNB will open “more opportunities and freedom to seek innovations.”

Samy Karim, BNB Chain’s ecosystem coordinator, said: "BNB Chain will embrace large-scale applications, including GameFi, SocialFi and the Metaverse. In particular, scaling from one chain to multi-chain, improving scaling solutions and expanding the validator set of BSC from 21 to 41, with 20 validators functioning as candidate block producers," The Block reported.

Forbes and Magnum Opus Acquisition, a publicly-traded special purpose acquisition company (SPAC), recently revealed a $200 million strategic investment by Binance.  

Changpeng “CZ” Zhao, founder and CEO of Binance, said: “As Web 3 and blockchain technologies move forward and the crypto market comes of age we know that media is an essential element to build widespread consumer understanding and education.” 

Binance Holdings has been setting aside funds since 2018 to build a $1 billion insurance fund to safeguard against the hacks on its trading platform, Bloomberg reported, citing an internal memo.

In the memo, Zhao said: "At Binance we always said 'funds are safe,' and today the Binance Secure Asset Fund size acts as an effective safeguard as well as protection for users against such unlikely issues."   

Could Binance Coin go up after the recent rejig of BSC? Read the BNB price analysis to find out.

Binance Coin weekly chart
Binance Coin weekly chart. Credit: Currency.com

Binance Coin price technical analysis: weekly chart

BNB’s price recently slipped below the uptrend line but the bears could not sustain the lower levels. This suggests that the breakdown may have been a bear trap. The bulls quickly pushed the price back above the uptrend line and have successfully defended it. 

Hence, this becomes an important level to watch on the downside. If the price turns down and breaks below $377.2, the BNB/USD pair could resume its downtrend. The pair could first drop to $344 and later to $302.

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On the other hand, if buyers push the price above $438.70, the pair could rise to the 38.2% Fibonacci retracement level of $481.70 and then to the 50% retracement level of $514. This zone is again likely to act as a strong resistance.

Binance Coin daily chart
Binance Coin daily chart. Credit: Currency.com

Binance Coin price technical analysis: daily chart

BNB’s price has reached the 50-day simple moving average (SMA) where the bears are expected to mount a strong defence. The 20-day exponential moving average (EMA) has flattened out and the relative strength index (RSI) is in positive territory, indicating that bulls have a slight edge.

If buyers push and sustain the price above $444.16, the pair could rally to $504.61. Such a move will signal a possible trend change. 

Conversely, if the price turns down from the current level, the zone between the 20-day EMA and $389.69 could act as a support. If the price rebounds off this zone, it will indicate that bulls continue to accumulate on dips. The buyers will then again attempt to drive the price above the overhead resistance.

This positive view will be invalidated if the price breaks below $389.69. That could open the doors for a possible drop to $358.91.

Binance Coin: buy or sell this week?

Binance Coin’s price analysis shows that bulls are attempting a comeback which will gain strength above $444.16. The bullish view will be negated if the price turns down and breaks below $389.69.

The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision. 

Binancecoin to US Dollar
Daily change
286.1
Low: 285.86
High: 291.75

Further reading

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