Binance Coin (BNB) has recently garnered a unique reputation as a Tether styled coin that continues to remain stable even as the market bleeds. This behavior on behalf of Binance Coin (BNB) was also observed during the past few minor corrections. The coin is down only 33% since its all time high, compared to 70% for Bitcoin (BTC) and 85% for Ripple (XRP). This shows that smart money believes in the long term prospects of the crypto markets. It also means that investors that do not trust Tether due to its allegedly shady practices have found a new stable coin in Binance Coin (BNB).
Binance Coin (BNB) has traded well against Bitcoin (BTC) since February 2018. This further vindicates the fact that most investors believe that the correction is over for the most part and thus risk taking is starting to return to the market. Binance Coin (BNB) would not be surging upwards if investors feared that the market is due for another correction or were afraid to take risks with altcoins. Binance Coin (BNB) tokens are currently used on the popular Binance Exchange to pay exchange fees as well as to invest in ICOs that are offered on the platform.
The cryptocurrency has currently broken out of a triangle and is trading sideways. It is pertinent to note that Binance has gained incredible support and recognition in the past few months and its future prospects look brighter than ever. This is why so many investors hold Binance Coin (BNB) as they believe the exchange will be around for a long time to offer one of the best services in the crypto markets. The coin currently ranks at 15th place, above projects like Ethereum Classic (ETC), NEM (XEM) and VeChain (VEN). This should be surprising to many considering the aforementioned projects are fully developed blockchains whereas Binance Coin (BNB) is just a utility token to be used on one exchange. However, the fact is that markets are governed by supply and demand and currently the demand for Binance Coin (BNB) outweighs the demand for any of these projects. This is because the level of risk taking in the crypto market is unprecedented and investors are looking to invest in small cap coins more than ever.
BNB/BTC pair recently broke out of a rising wedge but quickly climbed back into the wedge and continued trading higher. Currently, Binance Coin (BNB) is up 6% against Bitcoin (BTC) in the last 24 hours. Binance Coin has traded aggressively against Bitcoin (BTC) over the last few months and seems to have found a new bullish channel after March 2018 (shown in blue). Binance Coin (BNB) is yet to test the bottom of the larger bullish channel (shown in yellow). The price last touched the bottom of the larger channel in late December 2017. It was followed by a rise to the top of the channel around late January 2018. Price movements in the cryptocurrency market can be quick and Binance Coin (BNB) might yet mark a new high for the year in the months ahead.