Binance Token Analysis — BNB
BNB Bullish October 2020
Token Analyst: Alexei Udall
Release date: November 5th 2020
Global Summary:
👍 BULLISH
Thanks for reading my BNB token analysis for the SwissBorg DAO Token Squad. In this analysis, I will detail my thoughts on the BNB token from a fundamental and technical standpoint. BNB Has held nicely over $30 for most of October, just 25% down from it’s all-time high in June 2019. It has climbed nicely approximately 25% this month from $25 to around $30. The last few months have also seen a number of positive developments from both the Binance team and utility for the BNB token which I will look at in more detail in the fundamental analysis below. So from both a technical and fundamental stand point I feel positive about this token in general.
Fundamental Analysis:
👍 BULLISH
The biggest trend in Crypto during the first half of 2020 was of course DeFi which helped improve market sentiment as a whole and attract a wave of new investors. Binance and all CEXs are under threat from DEXs like Uniswap more than ever. Binance has reacted to this by speeding up how quickly it lists new coins. Binance has also started offering a host of new features like the launch pool in response to the DeFi craze. This offers users a seemingly very low-risk opportunity to experiment with DeFi in a user-friendly way. I feel these new features that Binance are offering will help retain existing users and attract new users especially newer users that might struggle with other more complex DEXs.
Another key development that BNB has had in 2020 is the deployment of the Binance Smart Chain (BSC). This is Interoperable with the Ethereum Virtual Machine (EVM) this compatibility has some key benefits:
- It allows devs to easily port their dApps to BSC.
- It has very low fees in comparison to the Ethereum MainNet.
- It could easily work with Meta Mask.
- BSC has facilitated yield farming projects such as the BurgerSwap and BakerySwap.
BSC as an alternative to Ethereum could potentially drive a lot of demand for BNB alongside all the existing utility of the token. The BNB token price is fundamentally tied to the popularity of Binance as a platform. A bull market bringing in new users to Binance should result in increasing demand for BNB as users can still utilize BNB to reduce their trading fees on Binance by 25%. Many of the new features like Launch Pool allow BNB to be used in new ways, this should help keep demand and interest high for the BNB token. Based on the above developments I feel that Binance has been able to maintain relevance and feel very bullish on the token long term.
Technical Analysis:
Despite being in an upward trend BNB seems to be hitting resistance around $32 which it hit on the 13th of September. However, generally, I would feel bullish regarding BNB. A breakout over $35 within the next week or two could signal a move to new all-time highs. Falling below $25 for BNB presents strong support at $20 which was nicely tested in early September and rejected to the upside.
Looking at the various indicators detailed below we can learn a lot about the performance of the BNB token. The RSI has maintained stability showing strength. Volumes have also stayed high at over $300 million daily indicating that it is remaining a very popular pairing on Binance.
Due to the trending to the upside, my conclusion would be bullish in regards to BNB.
BNB vs S&P500 index
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About the author:
Written by Alexei Udall. Full disclosure I have owned BNB Token in the past. I reside in the Republic Of Ireland and work in Tech with a focus on business Solutions, SaaS and payment acceptance which now also includes in the crypto space. A proud father of two girls and a member of the SwissBorg DAO! You can connect with me on LinkedIn:
https://www.linkedin.com/in/alexeiudall/
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