Binance Coin price prediction: BNB forms dead cat bounce
The Binance Coin price is attempting to stage a comeback after the remarkable sell-off it experienced lately. The BNB price is trading at $463, which is slightly above this week’s low of $400. It has a total market capitalization of over $77 billion, making it the fourth-biggest cryptocurrency in the world after Bitcoin, Ether, and Tether.
Binance Coin is the native token for the Binance Smart Chain (Bsc) network, which is the third biggest smart contract platform in the world after Ethereum and Terra. BSc is a platform similar to Ethereum in that it helps developers build decentralized applications.
Today, some of the best-known decentralized platforms have been built using the BSc ecosystem. The biggest app in its ecosystem is Arken Finance, which handled about $97 billion in the past 30 days.
It is followed by well-known platforms like PancakeSwap, Biswap, Venus, and Solo. All these apps had a combined volume of over $20 billion in the past 30 days.
Data compiled by DeFi Llama shows that about 280 apps were built using the BSc technology. These apps have a combined total value locked of over $14.6 billion.
Another aspect about BNB is that it is used widely in the Binance exchange ecosystem, which is the biggest in its industry. Every day, Binance processes over $30 billion of cryptocurrencies. People who trade with BNB pair get additional features.
Most importantly, the BSc chain has been used to build the Binance USD coin, which is the third biggest stablecoin valued at over $14 billion. Only Tether and USD Coin are bigger.
While the BNB coin has been successful, it has not been immune in the ongoing volatility of the industry. Indeed, the Binance Coin price has declined by over 35% from its highest level in 2021.
Binance Coin price prediction
The daily chart shows that the BNB price has been in a strong bearish trend in the past few months. As a result, the coin has managed to move below the 25-day and 50-day moving averages. It is also slightly above the 38.2% Fibonacci retracement level. The coin has also moved slightly above the ascending trendline that is shown in black.
Therefore, for now, I suspect that the Binance Coin price will maintain the bearish trend. This rebound is a dead cat bounce, which happens after a strong bearish trend. In the long-term, because of its utility value, the coin will likely rebound.