Binance Coin (BNB) Holds Ground As Market Sell Off Continues

Binance Coin (BNB) has held its ground even as market selloff continues. Bitcoin (BTC) has exhibited similar behavior but the rest of the market plunged further into the red when Ethereum (ETH) showed signs of weakness. However, these temporary movements are not to be confused as what follows next. There are a lot of solid indicators in the market that tell us that deep down, most investors know that the market is going to reverse at some point. The problem at this point is that the small investors are too scared to get in fearing an extended correction and the big investors knowing that the small investors are scared are too greedy to accumulate at this point thinking they can get a lower price. The weekly chart above for BNB/USD shows that the behavior of Binance Coin (BNB) during the recent correction is one that most investors would have expected to have been followed by all other utility tokens. However, there is a little more to that than just long term potential. Binance Coin (BNB) derives its value from being a very valuable token to hold if you trade on the Binance Exchange. It does not matter whether you buy or sell, but when you trade, exchanges deduct fees. If you hold Binance Coin (BNB) while trading on Binance Exchange, you can reduce your fees by 50% as your fees are paid in BNB. This has led to an increasing demand for Binance Coin (BNB) even during the correction as a lot of people still buy and sell and they would rather pay half the fees with Binance Coin (BNB) than to pay full fees when they can easily buy the coin on the Binance exchange. The chart above shows another interesting development. Since the beginning of 2018, Binance Coin (BNB) has been in an accumulation phase. The Accumulation/Distribution graph on the above chart shows that even as the market nosedived, investors kept on accumulating Binance Coin (BNB). The chart also shows that Binance Coin (BNB) has almost reached the end of its correction cycle as indicated by the weekly RSI. However, seeing as how Binance Coin (BNB) has yet to complete the full extent of its correction against Bitcoin (BTC), there remains a possibility that the price could fall lower. As the weekly chart above for BNB/BTC shows, the price has yet to touch the bottom of the ascending channel. RSI for BNB/BTC is due for a fall to the bottom of the falling wedge that it is trading in. This means that the price of BNB/BTC is more likely to break below the triangle and fall to the bottom of the ascending channel rather than break above the triangle to touch the bottom of the ascending channel at a later point. Accumulation/Distribution pattern for BNB/BTC is the same as BNB/USD which shows that investors have been accumulating Binance Coin (BNB) not only to park funds (by avoiding Tether) but also to use it in the future as a valuable utility token for paying exchange fees on Binance.