The current price of $98 is a bit surprising as analysts used the MVRV method to predict a possible reversal at $76.
Binance coin (BNB) has made history with a 35% price surge to hit a new ATH price of $98 on February 9, 2021. Binance coin tripled its price point after trading at $35 on January 11, 2021. After the asset set a resistance level of $76, more buyers were invited into the market to push the asset to trade above the Parabolic SAR Point. This was a strong indication that the bullish run would continue with many expecting a $100 price point in the short term.
The journey to its all-time high was a constant battle between buyers and sellers as whales offloaded their assets thinking they have made enough profit. Data provided proves that addresses that had 100,000 to 10 million BNB on January 26 topped out at 34. After a couple of days, the addresses declined by 11.8% to 30 according to the reports.
The current BNB ATH price of $98 is a bit surprising as analysts used the MVRV method to predict a possible reversal at $76, and called on investors to be cautious when buying. Investors went all out to demand more of the asset pushing the price up on the price curve.
The possible reason for this price surge can largely be linked to the $1.5 billion worth of Bitcoin purchased by Tesla Inc (NASDAQ: TSLA).
“As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds, and other assets as specified in the future. Thereafter, we invested an aggregate of $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, we expect to begin accepting bitcoin as a form of payment for our products shortly,” Tesla stated.
This initiative was well received by the most popular crypto assets with Ethereum reaching as high as $1800 and Bitcoin breaking key resistance level to reach $48,000.
Soon after this announcement was made, Bitcoin reacted with a price surge to near $45,000. BNB has shown a strong correlation with the Bitcoin price in the last few weeks. Besides the technological news that has caused a significant rally in the crypto industry and having a spread over effect on BNB, there are few other reasons to look at.
There has been a token burst, which has affected the supply of the BNB. This permanent removal has reduced supply in relation to the rising demand. Also, smart contracts have been launched to help the development of DeFi products in addition to its well-established brand that always appears as an option for investors when looking for an asset to buy.
Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
