The Evolution of Binance Coin (BNB)
The Binance Coin (BNB) was initially created as an asset for sale in Binance’s ICO, providing users with the advantage of lower trading fees on the platform. Over time, it has transformed into a versatile crypto asset that can be securely stored in compatible wallets outside of exchanges, enabling direct transactions for various purposes.
Binance follows a quarterly burn practice for BNB, systematically eliminating coins since 2017. On a technical level, the Binance blockchain has undergone consolidation to form the BNB Chain, optimized for on-chain trading and utilized in Binance’s decentralized exchange (DEX) and other applications.
The BNB Chain comprises the BNB beacon chain and the BNB Smart Chain. The BNB beacon chain focuses on governance, allowing Binance Coin holders to participate in staking and voting. Meanwhile, the BNB Smart Chain acts as a consensus layer compatible with the Ethereum Virtual Machine and incorporates hubs for multi-chains.
Technical Analysis & Prediction of BNB Coin Price
As of the latest update, the BNB coin is currently valued at $247, experiencing a decrease from the previous day. From a technical perspective, BNB’s price is consolidating, building momentum for a potential shift. The current outlook suggests a continuation of consolidation within the $222-$271 range in the coming days.
The bulls are facing challenges pushing the price beyond the overhead resistance at $267, with an additional hurdle at $313. A critical level is observed as the bulls rely on support from the 50-day and 150-day EMAs. A drop below these moving averages could signify a loss of control by the bulls, leading to a potential decline to the robust support level at $205.
If the BNB bulls find support from the EMAs, there’s potential for an upward movement towards the long wick of the candle on November 21.
Conclusion
Binance Coin (BNB) originated from Binance’s ICO, initially designed for lower trading fees. Quarterly burns are conducted by Binance to manage coin supply. The current price of BNB faces resistance at $267, and an additional obstacle exists at $313, posing a critical challenge for the bulls.
Technical Levels
- Support Levels: $225 and $205.
- Resistance Levels: $267 and $313.
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