This, together with the fact the Binance Coin, BNB was among a few tokens in the green on Tuesday, got me to overview the BNB token from a fundamental and technical point.
Binance Exchange Fundamentals
First off, the exchange’s new and improved verification process will likely increase the security level of their exchange and online wallet. Additionally, Binance is reportedly close to launching their DEX platform on their brand new blockchain. By creating their own blockchain platform, the exchange will migrate its digital asset Binance Coin (BNB) from the Ethereum network to its proprietary blockchain – Binance Chain. The blockchain will then support its upcoming decentralized exchange, Binance DEX. Many crypto enthusiasts believe decentralized exchanges are the future for the industry, so this move by Binance may put them ahead of the curve once the new, revived bullish momentum attacks the markets.
Some of the features of the new DEX will include:
- Issue new tokens.
- Send tokens to others on the DEX, and receive some in return.
- Freeze some tokens, and unfreeze them later.
- Propose new trading pairs, with the whole community having a say on the merits of the pairing.
Binance Coin, BNB, Technical Analysis
Now let’s take a look at BNB’s price action. While the Binance DEX news created a bullish wave in the token last week, things aren’t yet looking so bright for the BNB/BTC pair. Even Tuesday’s 3.3% gain wasn’t able to help the pair break above the daily Ichimoku cloud or the 50% Fibonacci retracement level at 0.0014.
On the bright side, the pair hasn’t dropped to the key support of 0.0011 either. With any luck, it may have bottomed out at November lows of 0.0012. If the pair isn’t able to break above the cloud, we could see another test of 0.0012 and even the 9-month low of 0.0011 before the DEX is released and the bullish momentum is back.
*This article was originally published here: