BNB price soars 18% versus USD, will Binance CeFi pump it higher?

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blockchain
  • The BNB price is up by double digits against the USD
  • Changpeng Zhao main focus going forward is to build a vibrant CeFi
  • BEL and the Launchpool farm tokens are high yielding
  • Commentators’ BNB confidence anchored on the Launchpool success
  • The immediate support level for the BNB price is $25

The crypto scene is full of its ups and downs. Highlighting this roller-coaster rise is the performance of the BNB price in the last 72 hours or so. 

Admittedly, the launch of the controversial CeFi by Binance and Changpeng Zhao generated enough heat. However, this was before the BNB price pumped, soaring above Feb 2020 highs and printing new highs. It was a streak that couldn’t go unmentioned.

Binance—which is undoubtedly one of the largest centralized exchanges with tentacles both in the DEX world, is aggressive. It without blinking sunk $400 million in CoinMarketCap, launched the Binance DEX in the early days of trustless swapping and AMMs, and their cross-hairs are now firmly in DeFi. 

The objective: emulate Ethereum and ETH success, place BNB at the center of proceedings, and hopefully pump the coin.

The results are thus far impressive. Liquid Swap and their centralized Automatic Market Making (AMM) model, the Launchpool, may end up trailblazing, paving the way for other CEXes. 

Considering how stiff the competition is, it won’t be surprising for BEL, WING, SXP, and Binance’s CeFi to end up buttressing BNB simply because the coin is at the center of affairs, priming the CEX’s ecosystem.

After the end of last week’s burst, the BNB price is cooling off. Nonetheless, that isn’t preventing farmers from sniffing opportunities. 

With irresistibly high APRs coupled with the promise of a deflationary token, odds are there is more for BNB and BEL—which is already soaring at the time of press, despite the staking period ending on Sep 15. 

Aside from the high-interest rates, yield farming of BEL tokens will be done straight from the exchange’s website. This spares traders from the tricky situation of committing to an insecure decentralized protocol whose code is not audited. 

Leaning on caution, the re-basing bug in the YAM protocol, for instance, irreparably damaged its reputation and their comeback looks slim. 

BNB price analysis

BNB price for Sep 16 by Trading View
Binance Coin (BNB) Daily Chart by Trading View

The BNB price may be down four percent against the USD in the last trading day but it continues to outperform the greenback, BTC, and ETH in the past week.

Changing hands at $27 a pop, the coin’s performance is nothing short of impressive. As long as CeFi and Launchpool gain traction, BNB will likely pump. From candlestick arrangements in the daily chart, the path of least resistance could be northwards. Already, volatility is high as the upper and lower BB diverge. Meanwhile, the middle BB will provide immediate support.

At the time of writing, the BNB price is trading above Feb 2020 highs. Despite the pullback correcting the over-valuation of Sep 14, the break above $25 was with high trading volumes. 

Since Sep 16 losses will likely be a retest before trend continuation, every low above Feb 2020 highs technically presents buying opportunities with the immediate target at $42 or June 2019 highs.

Analysts’ comments

Activity in Binance Smart Chain (BSC) continues to increase:

The success of the Launchpool will be a real pump for BNB in the medium term:

Disclaimer. All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Cryptopolitan strongly recommends that you perform your own independent research and/or speak with a qualified professional before making any investment decision.

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