Binance BNB/USD continues to surge, again eyeing the $300 price level. The cryptocurrency trades at $287 after adding 5% in the day. The gains in BNB come as other exchange-related tokens continue to struggle. Does it underline Binance’s domination in the cryptocurrency sector?
Data by The Block Research shows that Binance powered 55% of the total spot trades on October 24. The exchange also powered more than 54% of the derivatives trading on the same day. The dominance comes amid regulatory hurdles Binance faces, with regulated exchanges like Coinbase lagging behind.
The high trading volume on Binance underlies trust in the leading crypto exchange and its growth trajectories. Binance has acquired several licences globally, having widened the net in the Middle East, Italy, Spain, and France. It also plans for further expansion and acquisitions, cementing its position as the largest crypto exchange.
Consequently, when the bull market returns, investors could look at Binance as the preferred destination. The stability of its native token is a testament to the investors’ trust.
BNB outlook and prediction as the price recovers above $266
Source – TradingView
Technically, BNB has overcome the $266 bottom, a level it has held for two months now. The latest surge has seen the cryptocurrency recover above the 20-day and 50-day moving averages.
The MACD indicator is moved above the midpoint and is entering the bullish zone. The indicator shows that momentum is building for the cryptocurrency.
Should you buy BNB?
BNB looks well on course to $300, the key and established resistance. However, we remain cautious of a descending trendline on cryptocurrency.
Each time BNB has attempted to recover, it has been held back before hitting $300. It has formed lower local tops, resulting in a descending trendline. The cryptocurrency is already facing resistance at $286, meaning we may see some correction.
Consequently, we should wait for further price action to consider whether to buy BNB. Also, for a better risk and reward ratio, it would be better to buy the cryptocurrency lower towards or at $266.