Can Binance Coin Break Into the Top 5 By 2020?
Binance Coin has undergone an extravagant price surge over the period of 2019. With a 273% price increase over the past 90 trading days, Binance Coin (BNB) is the strongest performer out of the top 50 ranked cryptocurrency projects.
The cryptocurrency has seen a further 25% price increase over the past 7 trading days, allowing the market to poke its nose above its previous ATH level at $25.18 level. This makes BNB the first cryptocurrency to break its previous ATH level, as we previously wrote about. The market has fallen slightly, and is now trading at a value that is -3% lower than the ATH price.
Binance Coin is the cryptocurrency created by the world-leading crypto exchange Binance. The cryptocurrency, when used on the Binance exchange, allows users to receive discounts on trading fees. Furthermore, the tokens also let users participate in lottery form the Binance Launchpad program, which is a crowdfunding platform to launch Binance-vetted cryptocurrency projects, such as BitTorrent Token.
In this article, we will take a look at the possibility of BNB reaching the top 5 ranked cryptocurrencies by 2020.
BNB is currently sitting in the 7th-ranked position according to market cap value, as it presently holds a $4.46 billion market cap. To reach the top 5, BNB will need to increase its market cap value to at least $5 billion to stand a chance of competing within the top 5. However, there are a string of partnerships and development updates that may help BNB stand a chance in increasing its value to reach the top 5 ranked projects by 2020.
Let us take a look at some of the positive drivers that can potentially allow BNB to rise into the top 5 ranked cryptocurrencies.
In March 2019, a partnership was announced between BNB and Identity Mind, a risk management compliance platform with KYC (Know Your Customer) and AML (Anti-Money Laundering) services.
Identity Mind, a subsidiary of Overstock.com, has partnered with Binance Exchange to improve data protection for its customers and ensure compliance is met within the exchange. The partnership aims to create a new industry standard in the regulatory compliance field as Binance continues to strive to be ahead of the regulators to protect its customers.
CertiK, a blockchain and smart contract verification platform, announced their partnership with Binance at the start of 2019. The platform was created by professors from the top universities of Yale and Columbia.
CertiK tests for vulnerabilities within the blockchain network and smart contract codes through mathematical theorems. It is used to prevent any potential hacking attempts within the coins that are traded on the Binance exchange.
Ella Zhang, CEO of Binance Labs, had this to say about the partnership:
“We chose to partner with CertiK because we believe that security is paramount to give the ecosystem the confidence needed for greater adoption of blockchain technology. When token projects present us with an audit report verified by CertiK, we know that they take security as seriously as we do at Binance.”
The Binance DEX (Decentralized Exchange) is set to be launched at some point during April 2019. The company released their testnet for public use in February, and since then users have been excited for the upcoming DEX.
The Binance DEX will utilize Binance’s own blockchain, Binance Chain. The decentralized exchange will allow users to securely trade cryptocurrencies through the use of the recently acquired Trust Wallet app.
Trading through a DEX allows users to retain control of their own private keys. This means that users will no longer have to trust Binance Exchange to keep their funds safe from hackers, and can choose to leave the coins in their own Trust wallet app.
BNB Long-Term Price Analysis
Starting from today’s market cap values, for BNB to reach crypto’s top 5, it will need to increase past the $36 level. Let us take a quick look at the BNB/USD market and highlight some key potential resistance areas on the way up toward $36 for BNB.
BNB/USD – LONG TERM – DAILY CHART
Analyzing the BNB/USD chart above, we can clearly see the positive momentum behind Binance Coin. The market broke above the 100-day moving average during February 2019, a very strong bullish signal, and has continued to rise ever since.
Most recently, we can see that BNB also managed to, briefly, break above its previous ATH price at $25.18 (the pink line), becoming the first cryptocurrency to do so in the top 50 ranked projects.
Binance Coin is currently now trading at resistance around $24.50. If the bullish pressure can continue to cause BNB/USD to rise further higher above $25.18, we can expect immediate higher resistance above to be located at the short-term 1.618 Fibonacci Extension level (drawn in blue), priced at $26.60.
Above $26.60, BNB will then experience resistance at $27, $28, $29, and $30. If the bullish momentum can continue to cause BNB to travel above $30, we can then expect significant resistance above to be located at the medium-termed 1.272 Fibonacci Extension level (drawn in purple), priced at $31.30. This is then followed up with more resistance at the 1.414 Fibonacci Extension level (drawn in purple), priced at $34.31.
If the buyers continue to climb above $35, they will be open to testing the $36 level, which will leave the Binance Coin market cap valuation with a $5 billion value, allowing it to break into the top 5 ranked projects.
BNB hitting the top 5 ranked projects before 2020 is certainly a very possible outcome. With the recent momentum experienced by BNB combined with the upcoming DEX, scheduled for sometime in Q2 2019, we can expect the hype and excitement to continue for BNB over the following months.