The Binance Coin is still in consolidation mode as the rest of the cryptocurrency universe waits for a catalyst. BNB is trading at $363, which is in the same range where it has been in the past few trading sessions. The coin has a market cap of more than $56.19 billion, making it the 4th biggest cryptocurrency after Bitcoin, Ethereum, and Tether.
What is Binance Coin? For starters, Binance Coin, shortened as BNB, is the native currency for the Binance Smart Chain (BSC) network. The BSC is a leading platform that is similar to Ethereum in that it helps developers build decentralized applications, often known as dApps.
This includes apps like those in the non-fungible tokens and decentralized finance. In the past few years, the BSC has become a relatively popular chain among developers. Some of the top apps built in the network are PancakeSwap, Venus, and Reef, among others. In total, the total value locked in the BSC Defi is more than $20 billion, which is lower than that in Ethereum’s blockchain. The BSC ecosystem has more than 400 DeFi projects, 46 games, and more than 100 tooling tools.
The BNB price is consolidating as investors wait for more catalysts. This could happen today after the US publishes its inflation data. So, what next for the Binance Coin prices?
Binance Coin price analysis
The four-hour chart shows that the BNB price has been in a consolidation phase recently. The coin is trading at $363, which is below the two resistance level at $433. It is also between the 38.2% and 23.6% Fibonacci retracement levels. Notably, it seems to be forming a head and shoulders pattern, which is usually a bearish sign.
Therefore, the pair may break out lower in the near term. This is in line with my prior Bitcoin price prediction, where I argued that the relief rally seems to lack legs. If this happens, the next key support to watch will be at $320. A move above $400 will invalidate this trend.