Binance Coin Price Up By 5.12% – Time To Buy BNB?

The Binance Coin (BNB) is backed by Binance, one of the most popular cryptocurrency exchanges in the world. This fact may have encouraged investors to buy BNB over time.

The Binance cryptocurrency exchange is one of the most popular in the world. The platform is known for its low trading fees and has attracted a wide community of cryptocurrency traders.

BNB traded higher on Monday after a dull weekend alongside other major cryptocurrencies. In this article, we will explore the growth potential of the Binance Coin and determine if this is the right time to buy BNB.

Binance Coin– Foremost Proprietary Coin

The Binance Coin is the fourth-largest crypto by market capitalization, behind Bitcoin, Ethereum, and stablecoin Tether.

Binance was founded in 2017 by Changpeng Zhao.

BNB was initially created as a traditional ERC-20 token on the Ethereum network before the Binance blockchain was launched.

The coins are issued from the blockchain and secured by the Tendermint byzantine-fault-tolerant (BFT) consensus mechanism.

The Binance blockchain does not rely on the proof-of-stake (PoS) consensus, neither does it use smart contracts. Instead, it uses the delegated proof-of-stake (DPoS) and proof of authority (PoA).

Aside from serving as the native token of the Binance exchange, BNB is also the cryptocurrency that powers the Binance Smart Chain (BSC).

BNB is used to fuel transactions on the BSC and pay transaction fees on the Binance exchange.

The coin also acts as the token that offers discounts for trading on Binance’s decentralized exchanges (Binance DEX) and its stand-alone DEX platform PancakeSwap.

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BNB: Rallying Despite Market Downturn

BNB has gone through a significant price increase in 2021, which has encouraged more investors to buy BNB. The asset surged to an all-time high of $650 in early May.

However, it slumped soon after to $496.98 on 18 May and further to $283.45 the next day.

The asset is currently trading at $331.89, with its price jumping by 5.12% in the last 24 hours. If you’re looking to buy BNB, now might be the perfect time to buy in on the action.

BNB’s Technical And Fundamental Analysis

The BNB price on the chart is presently suggesting a bullish pattern. The asset’s relative strength index (RSI) is 41.88. This is a strong range that investors who want to buy BNB can still lock-in at.

BNB’s 20-day moving average (MA) and 200-day MA prices are at $331.28 and $330, respectively. This signals a bearish trend that may turn bullish as the RSI indicator.

In terms of fundamentals, Binance’s founder recently disclosed that the firm plans to double its global compliance team by the end of 2021. In an open letter, Zhao said Binance’s international compliance team and advisory board have already grown by 500% since last year.

Zhao’s announcement came as no surprise as the exchange has been dealing with regulatory pushbacks globally. The UK’s financial watchdog, the Financial Conduct Authority, recently banned Binance from offering crypto derivatives to UK investors.

The firm is also facing similar cases in Japan and Thailand. Last month the Japanese Financial Services Agency issued a second warning to the trading platform to cease operation in the region.

In Thailand, the Securities and Exchange Commission (SEC) recently filed a criminal complaint with the Economic Crime Suppression Division of the Royal Thai Police (ECD) against Binance.

According to the regulator, Binance has continued to operate in Thailand without the necessary operational license.

Investors who want to buy BNB may have to consider the crackdown on Binance’s services and the firm’s attitude toward regulation.

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