Binance Coin (BNB) Is Still Stuck in a Downtrend, What’s Next?

Binance Coin (BNB) Is Still Stuck in a Downtrend, What’s Next?

Binance Coin (BNB) is a native token specially designed for making transactions in the Binance ecosystem. Indeed, those who have invested in Binance a few years ago now get a good return on their investment. Unlike other cryptocurrencies, the coin is not inflationary, so there is no hindrance in mining fresh coins. 

However, the Binance company buys back the token every three months with 20% of its profit conducted to coin burns. In this way, they decrease the total supply and increase the token price. Theoretically, it will continue until the total number of coins reaches 100 million, ensuring the supply remains in control.

Like other cryptocurrencies, Binance coin also offers many features such as low fees, special offers, perks, loans, etc. Binance has already decreased the trading fees by about 50% if you use the native token to set your trade. 

Besides that, you will get discount perks and offers on the partners’ marketplaces if you pay through BNB coins. BNB holders can book flights and hotels, allowing cashless transactions. On some platforms, holders can use BNB as collateral.

When writing this analysis, the BNB coin is trading at a price of $372, which is forming a support level. It is interesting to note that MACD is taking a bullish reversal on the daily chart with a stronger RSI of around 39. Though the candlesticks are forming in the lower half of the Bollinger Band, we still think it will reach the level of $400, which is a strong resistance level on the chart. So, is it a good time to invest in BNB? Find more details about the future of this crypto. As a short-term investor, if you want to have swing trading, then we think it is a good opportunity. It is a great opportunity for long-term investors as well. 

However, analysts believe that the cryptocurrency will consolidate at least till the middle of this year, so if you want to wait for a better opportunity, we think it will not be a bad idea. If it breaks the level, BNB will take the next support at around $285. You can wait for that level as well. It is time to accumulate some coins for the long term. Binance is a popular crypto exchange with the potential to grow in the future.

Frank Weeks

Frank Weeks joined FxNews.Media as a junior editor. He covers the latest updates on the ongoing forex market & signals, trading platforms, prices & charts, and much more.

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