Binance BNB Price Prediction for 2021 and Future Predictions | FXleadersFX Leaders

Binance Coin (BNB) Price Prediction for 2021: Is BNB Ready to Rally Again?

Last updated on Sat, July 10, 2021 by
Arslan Butt • 5 min read
(%)
MARKETS TREND

Binance (BNB/USD) – Forecast Summary

Binance Forecast: H2 2021
Price: $450 – $550
Price drivers: China’s crackdown on cryptos, Crypto lawsuits, Binance exchange ban?
Binance Forecast: 1 Year
Price: $600 – $700
Price drivers: Crypto legal battles, Binance expansion, Crypto market sentiment
Binance Forecast: 3 Years
Price: $2,000 – $4,000
Price drivers: Global politics, Crypto policies, Crypto market sentiment, Binance expansion

 

Binance started the bullish rally a bit late compared to most of the market. It started climbing higher in February and kept making new highs, as it broke the $700 level in May according to some crypto brokers, while others placed the highs just below $700. The price started the bullish run in early February, as it surged from around $ 50 to $ 370 that month, while by the beginning of May this digital currency reached $700. It gave back half of the gains in the last week of February, but it turned extremely bullish in April, which continued until the middle of May, putting this cryptocurrency among the ones that continued the surge for one more month, while most of the market was retreating lower. This was a bullish sign for the Binance Coin BNB and now after the crash it still seems more biased to the upside than most other cryptocurrencies. This crypto has formed a bottom at $220 and despite certain powers trying to fight it in the UK and Japan, it is still holding on better than many other cryptocurrencies.  

The Binance coin is a digital asset that was launched by the Binance exchange. Users can pay their Binance charges in BNB, and they receive discounts in return. These discounts are valid for four years, and they halve in value every year: 50% in the first year, 25% in the second, 12.5% in the third, and 6.25% during the fourth. The primary purpose of Binance Coin is the payment of fees, although it can also be spent in various online and physical stores worldwide. Apart from this, one can also invest BNB in Initial Coin Offerings (ICOs) that were founded as part of Binance’s Launchpad program.

So far, the world’s 10th-biggest cryptocurrency, Binance Coin (BNB), has a market capitalization of $ of around $48.88 billion. Binance Coin (BNB) was initially formed on the Ethereum network in July 2017, making it a 3rd-generation cryptocurrency and ERC-20 token. 

Binance Coin was created by the popular Chinese cryptocurrency exchange, Binance. A portmanteau of ‘binary’ and ‘finance,’ Binance trades around $ 7,184,160,910 in a typical 24-hour period, and it is the world’s biggest crypto exchange. Its success could be attributed to its in-house matching engine that matches users looking to buy and sell the same asset. In this way, Binance is likely to go from strength to strength, but what about Binance Coin?

Recent Changes in the Binance BNB/USD Price 

 

PeriodChange ($)Change %
1 Month-53-14.4%
3 Months-346-52.8%
6 Months+234+296%
1 Year+300+2,300%
Since 2018 +212+9,999%

 

Binance Live Chart

BNB/USD

 

BNB/USD – Factors that Impact the Price of Binance Coin:

The following factors that impact the price of Binance Coin will help you to understand the market and predict periods of growth or decline, based on current events. The predictions are typically based on the principles of technical analysis. Despite this, we all need to understand different factors that can impact the price of a particular asset, which in turn enables us to make sensible investment decisions, based on changing events.

Many cryptocurrencies are currently not subject to any control by governments and central banks. However, if any changes were to occur in the coming years, this could impact the value of Binance Coin. Let’s take a look at the three most vital factors that can affect the price of Binance Coin:

Supply and Demand:

The relationship between supply and demand could be considered a ‘catch-all’ factor that will always influence the price of Binance Coin. It is also worth noting that the relationship between supply and demand itself is dependent on many different factors. In simple words, the price of an asset will decrease if the supply exceeds the demand, and in turn, it will increase if the demand is greater than the supply. 

Supply of Binance Coin:

Binance is halving its coins and this event occurs roughly once a year. It cuts the reward for mining new blocks in half. Like Bitcoin, there is a maximum total supply of Binance Coin. When it was first launched, the total supply was about 200 million; however, the Binance exchange intentionally destroys Binance Coin tokens over time.

 This is normally done to control the supply of the cryptocurrency, which helps the Binance coin prices to stay firm. In simple words, Binance can manage the relationship between supply and demand by reducing the total supply, which has a positive impact on the price of Binance Coin. 

The Success of ICOs:

Another major factor that can influence the Binance Coin prices is the success of the ICOs that participate in Binance’s Launchpad scheme. If Binance supports launching a series of new popular cryptocurrencies, it means that Binance Coin users have more options for trading their tokens. This, in turn, underpins the demand for Binance Coin, as it creates more reason to trade on the Binance platform and therefore to own BNB. 

US Dollar & Binance Coin:

The prevalent surge in Binance Coin could also be attributed to the weaker US dollar, triggered by the progress towards agreeing on the next round of US fiscal stimulus, which has undermined the demand for safe-haven assets like the US dollar and contributed to the gains in Binance Coin.

Why Buy Binance Coin? The Qualities of BNB:

Let’s talk about some great reasons to buy Binance (BNB) Coin.

Affordability – Compared to other coins, like Bitcoin, BNB is favorable in terms of buying, as it is pretty affordable. You can easily trade BNB coins on the Binance platform.

Supply and Demand – The supply and demand determine the growth of a currency’s value in a digital exchange. Bitcoin grew in value, thanks to its 21 million supply cap. In the meantime, 99 million BNB coins are already in the market, and as its fame spreads, the supply will diminish, which in turn exerts a positive influence on the prices.

 Community trust – Binance Coin is seen as one of the most trusted coins in the market, thanks to the ease of operation and a high withdrawal limit of $ 30,000. Investors are gaining more confidence in BNB, due to the low level of security issues. 

 Growth – As the Binance platform grows with time, the BNB currency grows at the same rate. The infrastructure is as strong as Bitcoin’s protocol.

Technical Analysis – Can we Expect a Continuation of the Bullish Trend – BNB/USD? 

On the technical side of the market, Binance turned bullish early in 2021, as did most cryptocurrencies, although BNB was a bit late starting the bullish rally. We saw the first bullish wave which took the price above $200, where it placed a high at $220 March was mostly sideways for this crypto, but in April the bullish trend resumed again, pushing it to around $700. The crash came by the middle of May, which sent BNB/USD nearly $500 down. That means a 71% decline, but the 20 SMA (gray) held as support, despite being pierced initially. The price formed a doji candlestick above the 20 SMA and BNB/USD bounced off that moving average the next week. But, the bearish momentum resumed again in the crypto market, as China and other countries increased the crackdown on cryptos. The price moved below the 20 weekly SMA again but the support and $220 is still holding. Now this crypto is trying to turn bullish again, but buyers should take out the 20 SMA which is acting as resistance now and the resistance zone between $420 and $440.

Stochastic suggests that Binance is oversold on the weekly time-frame

On the daily chart, the smaller moving averages, particularly the 20 simple Moving Average and the 50 SMA (yellow) were acting as support during the bullish trend of earlier this year. But, those moving averages were broken in May as the crash came, sending BNB/USD down.

The 200 SMA is acting as solid support or Binance coin on the daily chart

The price broke all moving averages, but the 200 SMA (purple) held as support on the daily chart, pushing the lows higher. This moving average was broken as well in June, when the second bearish wave came in the crypto market. although, BNB/USD pulled back up and has been trading above that for about a month. The second low was also higher than the first one in May, while most cryptos made new lows in June, which is another bullish sign for Binance coin. At the top, the 50 SMA (yellow) is acting as resistance, so the range is getting tighter and a breakout is expected soo, which should be on the top side for me, judging by the price action.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.