The cryptocurrency marketplace has survived the adverse effects of the ongoing pandemic. However, survival has been vacillating between ‘steady’ and ‘unsteady’. Every coin/token has had to undergo upswings and downswings in pricing and popularity. BNB, the native token of Binance, is no exception. On the other hand, if you are thinking about Bitcoin and planning to start trading, you may use a reputable platform like bitcoinsuperstar.
Binance and BNB
Now, Binance has always been a well-favored digital currency exchange. Therefore, it has been doing well, financially, too. Thanks to the regulatory approval that it has received recently in New Zealand, it will be able to attract more clients than before. After all, New Zealand authorities have granted it the license of a financial service provider.
The BNB coin proves useful in varied cases. To illustrate, it is open to exchange with other virtual currencies. Similarly, it is possible to pay exchange fees via BNB. Borrowers may use this coin as collateral when applying for loans.
Then again, flights and hotels across the globe, are ready to accept BNB as online payment. However, the offer is open only on selected, official websites. Finally, merchants are welcome to lure customers by offering BNB as payment.
Pricing of BNB
Admittedly, the pricing of BNB is bound to enjoy a hike, soon. However, New Zealand’s approval grants an inkling of what may be expected in the future, too. Should a few other nations opt for the same step as New Zealand did, it will prove highly favorable for the cryptocurrency industry. The reason is that numerous retail investors will discover a way to enter the global marketplace.
Experts believe that the pricing may not undergo any drastic change in the short term. After all, the digital asset industry is getting ready to confront another interest rate hike, sponsored by Federal Reserve. Therefore, it has been ensuring an outflow.
It is all too possible that BTC might approach a pricing of $10k. When the number one coin undergoes a price reduction, the other cryptos are bound to undergo it, too. Whatever the case, investors and traders may keep track of the rise and fall in prices. After all, it highlights all the details related to diverse cryptocurrencies.
The Current Scenario
Now, BNB is priced at $285.6, as if consolidating a position for itself in the range of $263 and $300. During the months of June, July, and August, the coin had been experiencing great highs and equally great lows.
Thus, the token’s pricing is at a crucial phase. The Bollinger Band’s upper half is displaying the formation of candlesticks. Thus, if BNB breaks the existing resistance, it will confront the next one, around $330.
On the negative side, it is quite possible that the candlesticks will break the support, instead. As a result, they will display all the lows that may occur within the short term. Nonetheless, analysts will have to tackle the long-term view first, before moving on to making any decisions related to investments.
The weekly chart has, thus far, been giving the feeling of a bearish trend. BNB’s lower lows and lower highs are responsible for this suggestion. However, the most recent chart has shown the formation of the weekly green candle in the upper arena. To conclude, investors interested in long-term profits via the BNB coin, may go ahead with investing in it.
The Bollinger Bands
A technical trader, John Bollinger designed these highly technical tools. They help investors/traders to comprehend the movements of the marketplace, in alignment with pricing fluctuations.
Three bands come into play, denoting upper level, lower level, and moving average. It is possible to plot these bands, in the form of lines, on a chart. If the prices seem very close to the upper-level band, they suggest over-purchasing. In case, they seem closer to the lower-level band, they suggest overselling.
True, these bands are extremely useful for technical analysis. Regardless, they have certain drawbacks, too. For instance, Bollinger Bands may not be used as standalone tools. They should come into play, along with other non-correlated indicators. This way, it becomes possible to gain access to more direct and informative market signals. Similarly, calculating via the usage of a simple moving average does not always give reliable results. The calculation gives equal importance to older pricing figures and recent ones.