Why Did Binance Coin (BNB) Soar?
Binance Coin (BNB) refreshed its record today and created a new ATH: $ 135BNB / USD went up to $ 115, with interest from institutional investors and firms. Used as a payment tool on the Binance Chain network, BNB exploded thoroughly with the use of BNB to buy Bitcoin (BTC) and Ethereum (ETH). The value of BNB increased by more than 45% within 24 hours.
BNB has managed to hold onto two important supports.
According to the 20-day exponential moving average (EMA), the bulls seem to have blocked the bear market. A stance was taken against the 20-day market movement according to the 50-day simple moving average (SMA).
A correction is expected when looking at the levels after the BNB has experienced such a rise. The most recent movements of cryptocurrency have put the Relative Strength Index (RSI) into the overbought territory. Especially, seeing the 70 level in the RSI indicates a price correction at mid to high levels.
Strong Foundations for BNB
BNB exploded after Binance Labs invested $ 2.4 million in Plasm Network. This means using the highest rate of $ 10 million in investment funds for Polkadot projects. Making a statement on the subject, Wei Zhou said:
“We were impressed by the growth of the Plasm Network.”
In his statements, he said that the Plasm investment is an indication of Binance’s support for the Polkadot ecosystem. Investors worry that Binance Labs’ growth will steal BNB’s role.
This statement supports that Bitcoin is seen by institutions as a value tool. Crypto currency exchange tokens with the BNB, seems to have benefited from the large volume after Tesla’s statement. As a result, demand for BNB has also increased in the short term.
BNB was trading at $ 130.50 at the time of writing.