The cryptocurrency market kickstarted a new week with a positive vibe. The weekly returns of crypto assets have outshined the traditional, namely precious metals and stock indices once again. On the alternative coin side, apart from the top DeFi tokens such as yearn.finance (YFI), Binance Coin (BNB) has provided a massive 40% return during the past seven days.
The SCN30 Index saw a steady gain from 233 points to 246.66 points, a 5.57% increase. BNB, the native token of one of the world’s largest crypto exchanges, definitely played a big part in the rise as it captured the DeFi hype with multiple new products launched.
In the past seven days, Bitcoin (BTC) offered a +4.62% return. Global commodities such as gold slightly rose by +1.50% while WTI crude oil plunged another -4.67%. The NASDAQ faced a minor correction with a -2.96% loss and the S&P 500 also dropped -1.27%.
Price Technical Analysis
BNB captured DeFi’s bullish momentum by continuously listing DeFi tokens as well as launching its own liquidity pool for the Bella Protocol under Liquid Swap. Changpeng Zhao (CZ), the founder and CEO of Binance also constantly encourages DeFi projects’ developers to migrate to the Binance Smart Chain which offers interoperability with Ethereum. CZ also claimed that Binance does not wish to replace Ethereum but only to promote the growth of DeFi by providing a faster and cheaper platform to build upon whilst relieving the strain on Ethereum’s blockchain.
BNB has now become an essential part of Binance’s DeFi ecosystem, acting as a collateralized asset, staking medium, and is also paid as a reward for liquidity providers. Subsequently, the price of BNB appreciated and took the spotlight as one of the hottest Altcoins of the week.
From the technical perspective, the rise above $27 took BNB to a new yearly high which displays tremendous growth and strength. With this clean breakout, the next target for BNB lies at the 161.8 Fibonacci’s level at $40, which was the all-time high created back in June of 2019. The retrace back to $27 which was the previous local top would be natural and can be considered as a support level.
The Huobi Token (HT) is the native token of Huobi Exchange, one of the leading crypto trading platforms based in China. Since the beginning of 2020, HT has seen steady growth with 80% year-to-date (YTD) return.
Price-wise, the HT looks bullish as it now stands above all three daily EMAs (9, 25, and 50) reflecting a clear uptrend. The next price target should be to reclaim the previous high at $5.5 while $4.70 can be considered as a short term support.
Despite not seeing any movement or attempt to capitalize on the DeFi hype, Huobi is certainly on the lookout for opportunities. We can expect that Huobi will follow Binance’s footsteps with new financial innovations and products to satisfy users’ needs.
Disclaimer: This analysis is the view of the author’s alone, and does not in any way represent trading advice. all traders should trade at their own risk.
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