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BNB’s target of $500 remains in play despite short-term retracement

BNB's target of $500 remains in play as recovery continues despite a short-term retracement

Binance Coin is among cryptocurrencies viewed as ‘Ethereum killers’ for enabling decentralization applications like DeFi protocols. 

BNB has benefited from the 2021 crypto rally that heightened trading activities on exchanges like Binance. As a result, the price rallied from $37 at the start of the year to reach an all-time high of $690 on May 10th. 

However, amid renewed crackdown concerns on cryptocurrencies in China, the market suffered a bloodbath, with BNB dropping to $247 on May 23rd. 

BNB/USD chart. CoinMarketCap

The token is now on a recovery path. Notably, the recovery is partly due to increased capital inflow from investors buying the coin after the price correction. 

As the native Binance Chain network token, BNB has risen in popularity due to the number of projects enlisting on the platform. PancakeSwamp is among the most significant DeFi projects utilizing the BSC ecosystem, presenting BNB an opportunity for substantial growth. 

The value of BNB is also projected to surge further over the planned launch of the NFT marketplace by Binance exchange that seeks to support small creators with low transaction fees. 

Binance Coin will potentially attract more investors over the ability to prevent future inflation through the BNB burn plan. Notably, the BNB burn plan makes the coin scarce by lowering supply.

Additionally, the growing Binance ecosystem has played a key role in BNB’s potential growth having elevated the coin to rank as the fourth-largest cryptocurrency based on market capitalization.

Binance ecosystem.

BNB also holds potential for growth over the ongoing plans by Binance to establish a cross-chain financial infrastructure to fill the gap in the DeFi ecosystem.

Is $500 a possibility for BNB?

An overview of BNB price movement shows the coin is making a modest recovery from the May 23rd low point having surged 75%. Amid the recovery, BNB moved between the 23.6% and 38.2% Fibonacci retracement levels.

Furthermore, BNB has breached the 50 EMA but has shown signs of struggle above 200 EMA. Overall, the EMAs are sloping up, providing a chance for an upward breakout. The indicators shows BNB’s long-term trends where the failure to cross the 200-day moving average, shows a technical signal that a reversal has occurred.

TheCoinRepublic’s Technical Analysis chart for June 3, 2021

There is a high probability the price will continue with the upward trend as bulls target a retracement at $450, which is 13% above the current price level.

On the flip side, a rejection at $450 could give room for a pullback to retest the $380 level, acting as the support line. 

The price movement of BNB points to a bullish outlook. In the event BNB encounters minor price correction, it will potentially lead to a buying opportunity. Elsewhere, if the token breaks the key EMAs, BNB will potentially surge to $500. 

Generally, BNB’s target of $500 and possibly another all-time high remains at play over the token’s strong fundamental support and increasing utility within the Binance ecosystem. Furthermore, Binance’s mission to dominate the crypto space puts BNB at the center of the growth.

As the cryptocurrency industry matures, investors are looking out for digital currencies with a low inflation rate, and the BNB stands a chance to gain with the token burn plans. Alongside increasing market exposure, the technical indicators are in favor of BNB.

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