Coin (BNB), the native crypto asset of Chain, a network developed by the world’s largest exchange, has spiked by 13 percent again, extending the momentum of and the rest of the market.
Within one month, the price of Coin has surged from $7.8 to $15.31 by more than 96 percent against the U.S. dollar.
1-Month Price Chart of Coin (Source: Coinmarketcap.com)
Off of its recent price movement, Coin overtook Tether, the most dominant stablecoin in the market, to become the 7th most valuable digital asset in the market.
In the week before, Coin surpassed and for the first time, achieving a market cap of over $2 billion.
Fueled by the momentum demonstrated by major crypto assets in the likes of Coin and , has recovered to $3,900 and is en route to enter the $4,000 region.
Can bitcoin Recover to $4,200 Off of the Rally of Binance Coin and Other Tokens?
Throughout the past month, many traders have emphasized the importance of the $4,200 resistance level for .
cleanly broke out of $4,000 in February but struggled to test the $4,200 level and as soon as came close to breaching out of $4,200, it plunged below $3,700.
Following a plunge in price of from $4,200 to $3,700, economist Alex Krüger explained on February 24:
Today’s crypto dump was a simple correction. Prices had just gone up vertically for 16 days without a pullback. Take ETH for example: +38% without a pullback. Levered longs piled up. People FOMOed. reached the first strong resistance ($,4200) and gravity kicked in.
1-Month Price Chart of (Source: Coinmarketcap.com)
Hence, while an upside movement above $4,200 could open to a potential rally above the $5,000 mark until the $4,200 level is broken, the asset remains vulnerable to a pullback to the mid-$3,000 region.
On the technical side, according to a technical analyst with an online alias “Mayne,” has found strong support at $3,700.
If the dominant manages to break out of the $3,900 to $4,000 range in the near-term, the analyst sees the asset engaging in an extended upside movement, potentially to $4,400.
“ found support at the yearly open and is now rejecting from the breaker I wanted to short at, ended up being impatient and shorting lower. Above the breaker, looks good for $4200-$4400. If we reject and lose $3700 I wouldn’t want to be long anything,” the analyst .
But, as CCN throughout the past two weeks, the strong performance of major crypto assets and have lifted the pressure on .
Su Zhu, the CEO of Three Arrows Capital, stated that the last time was valued at $57, was $6,500.
Last time was over $57, was $6,500+.
— Su Zhu (@zhusu)
have begun to show independent price movements and several assets have recovered to November 2018 levels.
The surge in the price of major crypto assets like also portrays the confidence of investors in the market, despite the uncertainty surrounding the short-term trend of .
leading higher
— Peter Brandt (@PeterLBrandt)
Why are Tokens Surging?
3 months in, 2019 has been a subpar year so far based on the prices of crypto assets.
However, in terms of development, institutionalization, and , the sector has seen more progress in the past 3 months than in 2018.
Investors are seemingly becoming more confident in crypto assets that are continuing to build and aggressively demonstrate progress in innovation and development.
Keep building, and careful what you wish for.
— CZ (@cz_binance)
One common similarity amongst coins like Coin and that have recorded substantial gains against both and the U.S. dollar is that they have showcased product launches, integrated scalability and privacy solutions, and an overall increase in .
Published at Thu, 07 Mar 2019 09:18:12 +0000
