Summary:
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The Binance Coin price (BNB/USD) on Friday plummeted by more than 10% in the last 24 hours.
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Investors are reducing their capital exposure to risky assets amid new Covid variant fears.
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Binance Coin is the utility token of the Binance Network.
The Binance Coin (BNB/USD) price pulled back more than 10% in the last 24 hours, erasing gains of the previous session. Binance Coin is the utility token of the Binance Network, which includes Binance Chain, Binance Smart Chain, Binance Academy and Trust Wallet.
The latest pullback is driven by fears of a new Covid variant that health experts say is more contagious and more resistant to existing treatments. South Africa has the higher number of confirmed cases, with a few more in Hong Kong. Some countries have already shut their borders because of the new variant.
As a result, some investors are now reducing their investments in risky assets and shifting them to more stable instruments, resulting in a massive plunge in crypto prices.
Should you buy Binance Coin now?
Unlike several other cryptocurrencies, Binance Coin derives its value from a list of tools and services, giving it an exciting outlook. The Binance Smart Chain, in particular, could benefit significantly from DeFi, thus boosting the BNB.
Source – TradingView
Technically, Binance Coin seems to be trading within an ascending channel formation in the intraday chart. However, Friday’s pullback pushed it towards the trendline support, creating a perfect opportunity for a rebound.
Therefore, investors could target potential rebound profits at about $632.3, or higher at $699.4. However, the decline could also continue further amid Covid fears, pushing the BNB/USD towards $517.1, or lower to $450.1.