Binance Coin [BNB] only gainer among top-20 coins: Technical Analysis
The cryptocurrency market fell below the $130 billion mark for the second time in a week, following an optimistic rise to $140 billion at the close of last week. Bitcoin [BTC] dropped below $4,000 on December 3 thereby causing a red wave among major coins. Several coins are seeing November-like lows with some coins dropping by double-digit figures. In all this mayhem, one coin stands out with a green sliver among a sea of red. Binance Coin [BNB], pegged on the 15th spot on the coin ladder is the only gainer in the top-20 following major announcements.
Playbetr, the free online social gaming and entertainment community has announced that it is now accepting Binance Coins as a mode of payment. This follows a trend of online companies allowing users to use cryptos for services availed.
— Playbetr (@Playbetr) December 3, 2018
Last week, $510 million (98.7 million BNB) in Binance Coins was moved for $0.03 in fees which alerted the BNB community. The coins were transferred out of the exchange to an unknown wallet within a few minutes, leading to concerns of a hack. However, Changpeng Zhao, the CEO of Binance took to Twitter to quell the unrest, informing the BNB community that this coin movement was done in order to increase security for its customers. He tweeted:
Nothing to worry about. Check the tx logs, plenty of tx FROM the new address TO our old wallets. No need to spread FUD. We are constantly working on beefing up our security even more. https://t.co/UnNJ5mH54g
— CZ Binance (@cz_binance) November 29, 2018
Following the Playbetr announcement and CZ’s reassuring of increased security to BNB holders, Binance Coin surged relative to the falling market and is now less than a $100 million behind Dash [DASH] and looking set to overtake.
The key support level of the coin is placed at $5.08, which the coin last fell below during the beginning of the month. The key resistance level of the coin is $5.36 and the coin is currently hovering below. The MACD line points to a bullish swing, which the coin is looking to break into as the day progresses, while the 100 EMA line points to an uptrend breaking at 0100 UTC on 4 December.
Given the dismal market conditions, investors are increasingly purchasing the only gainer, Binance Coin. This has led to an increase in the RSI from a Monday low of 31.72 to 56.75 at press time. The trading range exhibited by the coin is $5.042-$5.439, with the coin moving towards the higher end. At press time, Binance Coin has increased against the U.S. dollar by 2.20% and is priced at $5.24.
The virtual currency has surged past a declining Bitcoin [BTC] by 6.09% and at press time one BNB can purchase 0.00135764 BTC.
When Bitcoin was recovering past $4,000 and the collective market cap was above $140 billion on November 29, Binance Coin reached a weekly high of $732.4 million. During the past weekend, however, the coin dropped from the aforementioned mark by 11.59% to $647.5 million. By Sunday, the coin reached the $700 million point and then fell back down to $654.4 million when Bitcoin dropped below $4,000 on December 3. After the announcement by Playbetr and the investors being reassured of the safety of their BNB coins, the market cap increased from $654.4 million by 5.97% to reach $693.5 million by December 4. At press time, the market cap has dropped slightly and is valued at $685.9 million.
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