- BNB, the native token of Binance crypto exchange, extended its rally on Wednesday to hit its five-month high.
- The latest upside move came after Binance Launchpad announced its support for a $3 million IEO by the Sandbox Game.
- It flipped BNB above a crucial resistance level, with an analyst predicting a bullish continuation towards an $80 valuation.
Binance exchange’s native token BNB reached $23.81 a unit for the first time since February 2020.
Traders moved into the world’s ninth-largest cryptocurrency following Binance Launchpad’s announcement to conduct a token sale for the Sandbox Game. The exchange confirmed that it would assist the community-driven gaming platform in raising $3 million via the so-called Initial Exchange Offering (IEO). Excerpts from their press release:
“A token sale will be the next step for the company to raise funds after receiving a private round investment from Binance Labs. The highly anticipated The Sandbox (SAND) $3M USD token sale on Binance Launchpad will follow a lottery-format ticket claim and start on August 13, 2020, at 06:00 am UTC (+0).”
Binance Coin (BNB) surged higher following a new IEO announcement. Source: TradingView.com
The price of BNB increased by 6.79 percent following the announcement. The gains also came as a part of a broader upside move that started earlier this week. From its Sunday low of $22.94, BNB/USD was trading 26.53 percent higher as of 1238 UTC, Wednesday.
Flipped R/S
One trader anticipated an upside move in the Binance Coin market on July 28. He rightly predicted the token to test $24, following a crucial resistance level’s makeover to support. That level was at $21.55.
Retested after crossing & hodled ~18.5$ w/ increasing volume
UCTS Indicator showing Buy signals across multiple timeframes including daily(~15% up)…
Retests on this level are looking good for Longs toward ~21.5$/24$ if #BTC keeps pushing up!#BNB pic.twitter.com/F0jAJe4WnJ
— Nico (@CryptoNTez) July 27, 2020
The flippening also took place on BNB’s medium-term descending trendline resistance. Another analyst noted that the cryptocurrency moved above the said price ceiling, calling it an explosive move that could shoot its price towards $80.
Old BNB fractal shows the token in a move towards $80. Source: TradingView.com
The analogy took its cues from a fractal from 2018-2019 that portrayed the Binance Coin in a similar breakout structure. Back then, the cryptocurrency had logged a 320 percent rally following a break above its medium-term descending trendline resistance.
If the same happens in the current structure, then the BNB/USD is looking at a 300 percent upside move to target $50-80.
Binance Coin in Falling Wedge
More bullish scenarios for Binance Coin also developed as the price illustrated a breakout of a Falling Wedge pattern.
Typically, a Falling Wedge is a reversal indicator, that points to a sharp rebound in an asset that is falling. A textbook breakout takes the price by as high as the maximum height of the Wedge. In this case, that length is around $30.
Binance Coin (BNB) breaking out of a Falling Wedge pattern. Source: TradingView.com
The bullish scenario puts the Binance Coin en route to at least $55 in the coming sessions.
