The purpose of BNB is to use it as a medium of exchange on Binance, the most popular crypto exchange. The users who use this coin on the exchanges and spend it on trading receive brokerage discounts. It is also used to pay gas fees on the exchanges.
BNB is a token that can be traded on the open market and stored in any wallet that accepts ERC-20 tokens. The system burns some coins to reduce supply and increase the price. Besides that, Binance uses 20% of its profit to buy BNB for the open market.
If you analyze Binance fundamentally, then you can find quarter profits have increased significantly. Now let’s look at the technical analysis of Binance Coin.
At the time of writing, the BNB price is around $465. Overall the price charts are bullish. The $532 could be an initial resistance level, but the chart is strong enough to break the level easily. However, it will depend on the momentum of the crypto market.
On the daily chart, the MACD is bullish, and RSI is strong at 40. The candlesticks are around the baseline of the Bollinger Band. All these indicators suggest the price of Binance Coin will go up in the short term.
On the weekly chart, $326 can be considered at the initial support level, and the BNB price is coming downwards and might reach the level. The MACD is bearish, and RSI is 47, reflecting the price will come down in the short term.
However, should you invest in Binance coin? Before investing, traders should get more information to know the possible price levels of BNB coins in the near term. We think $330 is the major support level, and that would be the best price to buy the coin. However, you should wait for a couple of weeks for the right price.
Indeed, Binance is a popular crypto exchange, and it comes with good fundamentals. BNB is a good coin to hold for a long-term investment. Generally, crypto is a risky investment, and many countries are trying to regulate the market. Still, if traders want to diversify their portfolios, then BNB should be on the list because it has real-world fundamentals like the stock market, and many cryptocurrencies lack this feature.