In recent weeks, Binance Coin has been stuck within the agonies of a parabolic uptrend. The price of BNB was soaring higher in the middle of a mixture of demand for the Binance Chain and increased demand for the Binance exchange.
The crypto token has formed an amazingly firm weekly candle because of this intense momentum. Because of this, various analysts are now anticipating significantly further upside.
Particularly, one certain trader is keeping an eye on a continuation of this uptrend. He explained that BNB managed to break a crucial technical resistance. The previously caused it to see a stretched bout of range-bound trading.
Furthermore, he said that blockchain users are now searching for alternatives because of the strain the DeFi trend has placed on Ethereum. He stated that one factor that is pushing demand for BNB is the Binance Chain’s relative reliability.
Binance Coin (BNB) Sees Parabolic Rise as Popularity of Binance Chain Grows
As of the moment, Binance Coin is trading up over 5 percent with the current price of $30.50. This marks a huge rise from its recent lows of $20.00 that was seen just a few days ago.
Earlier this month, BNB’s price dipped as low as $18.20. The firm momentum that the cryptocurrency has seen over the past few days marks an extension of it.
There was a huge buying frenzy due to the decline in this price region. As aftermath, its price rallied to highs of $32.00 that was set yesterday.
This commemorates a new yearly high. It is just a little bit above $26 which took place in late-February when BTC and the aggregated crypto market peaked.
It seems that its strength has no plans of slowing down. The reason of this is both Bitcoin and Ethereum were not affected by its slight weakness in terms of its near-term outlook.
Analyst: BNB Breaks Crucial Resistance, Driven by Growing Demand for Binance Chain
One analyst spoke about the cryptocurrency’s recent strength. He discussed that he believes the growing demand for Binance Chain is causing this buying pressure. He said:
The high fees, the lethargic transaction times, and the high tx failure rate is seen by Ethereum recently due to the popularity of decentralized finance may be the reasons for this demand.
Binance coin may keep on outperforming BTC and ETH in the few days ahead because it seems to be moving independently from the aggregated market.