(Updated February 15, 2020) Binance coin had a spectacular year in 2019, even though its growth did slow down in the second half of the year. Buoyed by the launch of several IEOs through the Binance launchpad, BNB managed to outperform BTC by the end of the year achieving gains of over 150%. Remember this token at some point in 2019 managed to register gains of over 600%.
Key to the success of BNB has been how Binance exchange has masterfully managed to engineer the token to become an all-encompassing aspect of every facet of its ever-growing ecosystem. So far, it’s being used to purchase tokens for various IEOs, BEP2 transaction fees, DEX listing fees, and BEP2 token migrations.
This increased utility means BNB will continue to perform well throughout 2020.
In this piece, we are going to take a look at expert opinions and technical analysis, which suggest that BNB is set for good times in 2020.
Experts’ Opinion On Why BNB Price Will Rise
Tomaino, a former Coinbase employee, believes that there is a bullish case for BNB token. He argues that this will remain to be the case of Binance maintains its dominance in the cryptocurrency exchange industry. This is contingent on Binance evolving with improvements in decentralized exchange services. This will see the coin’s price surge.
According to a leading crypto publication, Binance platform has successfully launched several projects, such as the BitTorrent token (BTT) and Fetch.AI (FET) token, and it is also planning to revive initial coin offerings by generating quality tokens with strong user cases, which will encourage massive participation. Such developments will increase BNB’s adoption, and boost its price.
Messari reported that the ROI for BNB over the last one year was 154%. However, in the last six months, the ROI increased to 560%. Part of the reason is the platform’s strategy of frequently ‘burning’ BNB to constrict supply. As a proven strategy, this shows that the coin’s price will rise.
Additionally, WalleInvestor.com believes that Binance Coin is a profitable investment option. According to the site’s long-term forecasts, an increase is expected. The price prognosis for 2024-06-22 is $71.763. With a 5-year investment, the ROI is expected to be +93%. This prediction is based on previous and current developments on Binance platform, and its future plans.
Other factors that promise to push the price of BNB even higher.
BNB Is Fast Becoming The Next ICO Token
The rise to prominence of the IEO fundraising model has played a crucial role in the growth of BNB. Binance kept their promise of supporting at least one project every month through its launchpad.
By the end of the year, the exchange had held IEOs for eleven different projects, including; BitTorrent, Fetch.AI, Celer, Matic, Harmony, Elrond, WINk, Perlin, Band, Kava, and Troy.
The Launchpad allows projects to issue their tokens on the Binance Chain, which offers a simple and less error-prone platform compared to writing smart contract code.
It also provides the projects a chance to get their tokens listed on the Binance DEX by being voted by the community.
To participate, one needs to have BNB, and this explains why we saw the token increase in value in 2019. With more IEOs scheduled to be launched this year, we can expect to see the price of BNB continue to appreciate.
You Can Now Purchase Real Estate Using BNB
On October 10, 2018 Propy, a real estate firm that accepts payments in cryptocurrencies announced that it would take BNB for property purchases. The announcement was made via Twitter, and it had Changpeng Zhao the CEO of Binance excited:
“Propy will accept BNB for home buying! @Binance Chain is coming and $BNB, which is a great store of value today, will turn into programmable money. For the rapidly growing BNB community, we make it possible to invest in real estate with easy paperwork at Propy.”
Propy is a global real estate marketplace that has a decentralized title registry. By adding BNB as a payment option, the team behind the company aims to resolve issues that hamper international real estate transactions.
Also, they aim to create a unified property store and asset transfer platform for the global real estate industry.
Propy uses smart contracts to connect buyers, sellers, brokers, and escrow/title agents/notaries.
This move is significant for Binance Coin because as more people opt to pay for their property using BNB expect its price to rise higher.
Pay For Your Flight Using BNB
Recently Binance teamed up with TravelBit an Australian company to create a point of sale (POS) in airports both locally and internationally. The partnership saw Binance invest $2.5 million in the startup. So far, the company has managed to launch a payment system in Brisbane airport.
With the money invested by Binance, TravelBit intends to set up cryptocurrency payment terminals in other major airports around the world. It’s a move that will accelerate crypto mass adoption.
Currently, the new POS terminals accept only the top crypto coins – Bitcoin, Ethereum and Litecoin. And very soon BNB will be added on that list. What could this mean for BNB price? We’ll have to see, but it could be huge, as the travel industry touches billions.
TravelBit describes itself as the world’s first digital currency airport. Together with Binance, both plan to promote blockchain based technologies globally.
On the partnership, Changpeng Zhao said:
“Real usage is the most important factor on the way to cryptocurrencies’ adoption. It’s difficult to imagine a better example of cryptocurrency usage than traveling as right after you land in a foreign country you can find yourself lack of local currency.”
In conclusion, these three instances serve to show the growing acceptance of the Binance Coin. It’s safe to expect this adoption to be reflected on its price very soon.
In more minor news, BNB continues to see investment interest from different strategies used by Binance.com Some of those include:
- Lower transaction fees when it is used as the transacting cryptocurrency on the Binance exchange.
- Various trading competitions which periodically award BNB tokens as prizes. Binance’s Twitter feed has provided some details of the latest Binance competition which will give out 8000 BNB tokens.
- The global expansion of Binance, which has recently opened an African office in Uganda.
Technical Outlook On BNB Price
The analyst says that since we hit the high of .0048134 on April 20, 2019, BNB started trading under a falling wedge. The price broke out of the channel on Jan 21, 2020, which is an extremely Bullish indicator.
Secondly, It seems we might have a Golden cross soon as the 50D MA is moving towards the 200D MA.
The analyst is bullish on BNB and entered around .0018ish. He promises to buy more if it dips (In case BTC goes crazy). Currently, it’s retesting the trend line resistance turned support. “It is under my top 5 Coins for the long term.”
So Far BnB broke double top it made weeks ago and created some higher lows on the way. It also holds Gann’s angle as well as a low volume area. It broke it once but returned quickly back above it. The analyst believes if his calculations are correct, BnB has steady chances to reach the strong and wide low volume area marked above the current price. The full potential is 1:2.5
Since some altcoins were lively now, it is also supported fundamentally as Binance is the best place to get some altcoins.
All signals seem to be pointing to the same thing;
- We have a wave that peaked on the 13-Nov. And hit a low on the 23-Dec. The low hit is the same as back in late September (yellow circles).
- After this low was hit, the bounce pushed prices above EMA10, and bull/green volume started to increase.
- We have a broken downtrend line (black dotted).
- The RSI/STOCH hit oversold and is curving up and gaining momentum.
- Bullish divergence with the MACD. All these are bullish signals.
The signals are not really that important as prices can still go down and move lower just as they can move higher, what is really important is where the candles close.
The analyst believes Binance Coin is good to go. It looks pretty good, and it’s a very solid altcoin and can be bought not only for short/mid-term profits but also for the long-term.
The analyst says that he has opened a long position on BNB. The goal of this trade is to ride it from 618 to 618. It has currently bounced from the .618 fib of the move from the low. Therefore, he is targeting the .618 of the move from the high. After bouncing from the .618 of the move from the low, it successfully tested the daily 200ma and the daily 50ma as support amid a golden cross, which was also a daily pivot. MAcd is converging bullish, and RSI is above 50. Let’s Go!
Today’s update will be on BNBBTC with an initial rejection from structural resistance; it is now resting on the 200 MA.
Here are the points to consider;
– Trend putting in a lower high
– 200 MA as support (Golden Cross)
– Structural resistance as target
– Hidden bullish divergence
– Stochastics in lower regions
– Healthy volume profile
BNB is putting in a probable higher low after initial strong bear impulse, currently testing a critical trade location with inside bars.
The 200 MA is an important level of support, currently being held with an official golden cross. Structural resistance is the current target; a close above will be very bullish as this will put in a new higher high.
Stochastics is currently trading in the lower regions, crossing bullish, with lots of stored momentum to the upside.
The Volume profile looks healthy, strong bull volume nodes present. An impulse bull break of the daily inside bars will maintain further bull volume Overall, in the analyst’s opinion, BNB is likely to be supported here as the 200 MA is a key level. There are bullish signs in confluence; a retest of structural resistance is probable.
It’s clear from the above analysis, expert opinions and the general bullish mood within the crypto market that this would be the perfect time to get your hands on some BNB. Especially now that the market has retracted as it prepares for the next rally as we move closer towards the final quarter of the year.