Binance Coin (BNB) Defying Gravity After Sovereign Backing
- Binance Coin (BNB) price up 54 percent in last week
- The government of Argentina is supporting blockchain projects backed by Binance Labs
- Participation levels explode in recent days
Argentina is interested in blockchain projects and an accelerator program in conjunction with Binance Labs. They shall invest $50 in 10 different projects in the next four years. That is the confidence we need, and as Binance Coin (BNB) edge higher, there is an opportunity for traders to benefit from the recent uptick in demand.
Binance Coin (BNB) Price Analysis
On fiscal matters, Argentinians don’t trust their government. However, there is little room for blame. That should be laid squarely on the government’s shoulder. After several policy blunders that effectively wiped life savings pushing the country into an economic depression between 1998 and 2002, many prefer alternative forms of money. The Peso is plunging, and with a $50 billion lending arrangement with the IMF, the economy is on crutches.
Therefore, it is exciting news that in every Argentinean blockchain project that Binance Lab funds, the government through the Founder’s Fund and the Ministry of Labor, will sink $50,000 in grants. It is precisely what the community wanted and even a good sign of what is to come.
Perhaps, it’s a reliable indicator showing a rapid shift of trend where governments instead of swimming against the tide or rolling their sovereign backed asset like the already flopping Petro, are realigning with the general public and embracing the powers presented by public blockchains like Bitcoin. The $50k may give them a significant stake and make them money, but it is their endorsement that interests the crypto verse.
Coupled with other factors as Binance Launchpad and Binance DEX, Binance Coin (BNB) is pumping. To quantify, the coin is up the rankings displacing TRX and XLM as it registers 10.4 percent in the last day and 53.4 percent from last week’s close.
If anything, this is overwhelmingly bullish, and we expect prices to edge higher as demand builds. From a technical perspective, BNB is trading within a bullish breakout pattern. Because of higher highs of Mar 5, the path of least resistance is crystal: Northwards.
Bouncing off the 78.6 percent Fibonacci retracement mark on the coin’s all-time high low, recent higher highs seems to be like the release of a pent-up force. As a result, every dip (between $12.4 and $14) should be a buying opportunity, and the first target will be at $20 and later $26 as mentioned in our last BNB/USD price analysis.
In a breakout pattern, Mar 5 bull bar is significant. It has high volumes. And while we expect a retracement back to $12.4-$14 zones, any surge in participation levels could reinvigorate price action cementing our bullish outlook.
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