Binance’s BNB Hits 5-Month High on $3M IEO Announcement; What’s Next?
- 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.
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)…
— 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.