Binance is in recovery mode to start the week as traders are seeing glimmers of hope that Chinese cryptocurrency exchanges could reopen. In particular, traders are hoping that some clarity on government regulation could allow these companies to adjust operations to be compliant.
Against ethereum, Binance is up 4.65% but is still stuck in consolidation. Price is still bouncing between support at 0.0026 and resistance at 0.0028, although a break higher could confirm that bullish momentum is coming into play. Volume has picked up over the weekend but remains subdued so far, which signals that the sideways price action could continue.
Binance recently broke out of a downtrend against bitcoin and is up 1.99% against the latter. A new uptrend seems to be forming as the recent lows can be connected by an ascending trend line. Price seems to be hitting a roadblcok around the 0.0002 mark and might be due for a brief pullback before resuming the climb. Volume has been steady so investor interest can be sustained.
Binance is an up and coming Chinese exchange but it has its own cryptocurrency. These tokens were created by an Ethereum smart contract some time ago and a total of 80m BNB coins is kept in reserve, all of which belong to the team. A total of 200m coins were created initially so there are 120m BNB coins waiting to be traded.
However, the ban on ICO funding and the shutdown of bitcoin exchanges also threatens to put the existence of Binance at risk, although there is still some observable demand from other markets. A couple of weeks back, Binance addressed these concerns, citing:
“Regarding the recent announcement from China’s PBoC banning all ICOs, we are working around the clock on a solution that will fully satisfy the new regulations in China, while preserving and enhancing features that are valuable to our western community.”
Its CEO also noted that only 18% of transactions are affected by the ban as a lot of the volume comes from all over the world, and that other markets are gaining fast.