Binance Coin outperforms Bitcoin by 17% in July. Will there be an IEO season?

As the price of Bitcoin (BTC) has slowly consolidated over the past few months, The focus was on old coins. Massive movements have been made recently Chain link (SHORTCUT), Zilliqa (ZIL) and Elrond (ERD) and these are just a few of the most popular altcoins.

The last of the three is a IEO (first exchange offer)This means that investors’ eyes automatically focus on it Binance coin (BNB), so far this month It outperformed Bitcoin by around 17%. Also, When the price of Binance coins starts to move, IEO tokens usually follow the same path.

Daily performance of the crypto market

Binance Coin outperforms Bitcoin by 17% in July. Will there be an IEO season?
Binance Coin outperforms Bitcoin by 17% in July. Will there be an IEO season?

Graph of monthly cryptocurrency market performance. Source: TradingView

The BNB price is above the moving average of 100 and 200 days

As shown in the graph below, the BNB / BTC pair topped the moving average of 100 and 200 days this week. This is a crucial step forward as a new rally started in earlier times.

BNB / BTC 1-day chart

Daily chart of the BNB / BTC pair. Source: TradingView

As the daily chart shows, the BNB has built a double-bottom structure after which it has recovered slightly.

BNB / BTC 1-day chart

Daily chart of the BNB / BTC pair. Source: TradingView

The BNB price then tested the old support of 0.0016800 sats and at this confirmed level there was a small downtrend break.. This break led to a return to the level of the previous months.

This range is defined between the support of 0.0018000 sats and the resistance of 0.0023000 sats. Restoring this previous level is essential for further upward momentum.

If this level continues to be supported, you may expect to test the highs again. This is because the price tested the lows, lost support and regained support. In this case, this is usually a sign that buyers are behind the asset, which triggers another test of the other levels of the area.

If this argument were applied to the daily chart, retesting the resistance level of 0.0023000 Sats would mean that consolidation could occur above the 100 and 200 day moving average and this would trigger a repeated cycle. What decisive steps should the BNB take to achieve this?

BNB / BTC 1-day chart

Daily chart of the BNB / BTC pair. Source: TradingView

The BNB / BTC pair must first break the resistance range for confirmation. The first step would be to take the 100 and 200 day moving averages as support and keep them above the 0.0018000 saturation level.

However, if BNB / BTC wants to start accelerating, it must break through the resistance range at a saturation level of 0.0022500-0.0024000. Breaking through this resistance zone would enable a rally at its peak.

BNB / USDT must hold support at $ 17

BNB / USDT 1-day chart

Daily chart of the BNB / USDT pair. Source: TradingView

The USDT / BNB pair shows an obvious surge at the USD 16.50 to 17 USD resistance level. However, To maintain bullish momentum, a support / resistance turn at the same level is required.

Analysis of the 100 and 200 day moving averages shows some interesting features that require further analysis.BNB / USDT 1-day chart

Daily chart of the BNB / USDT pair. Source: TradingView

Both moving averages are currently below the BNB price, and this is relevant as the same thing happened in early 2019.

This advance started the cycle from $ 8 to a high of $ 40, which was also a rally of 500%. This does not mean that the BNB can conduct a similar rally since the future cannot be predicted, but it is still a valuable signal.

By breaking and flipping the 100 and 200 day moving averages for support Further upward momentum is guaranteed. In addition, the $ 16.50 to $ 17 level is currently in the moving averages area, so this area is likely to be a key factor in deciding whether the price can go up.

At the moment BNB / USDT has to clear the $ 21-21.50 range, then there is another barrier at $ 25.75-26.25.

Will the “IEO season” continue?

As already mentioned, When Binance Coin moves, IEOs usually follow it. It is similar to the correlation between Stellar lumens (XLM) and XRP (XRP). When the first moves, the second follows.

A Binance IEO that outperformed the market with a rally of 1,000% Elrond (EARTH).

ERD / BTC 1-day chart

Daily chart of the ERD / BTC pair. Source: TradingView

The daily ERD / BTC chart shows that once the price in May was above the 100 and 200 day moving averages, the price of Elrond saw a massive surge.

This massive increase led to an increase of 1.485%, which is one of the most significant movements this year. However, Does that mean that now is the best time to buy Elrond? No, because the price is unlikely to continue to rise.

The support level is significantly below the current price (approx. 90 sats) and there may be a decline in divergence.

The graph shows that IEOs have enormous potential that could increase as the Binance currency moves.

CELR / BTC 1-day chart

CELR / BTC daily chart. Source: TradingView

There are other IEOs with similar price activity to Elrond., but they lag far behind. Take for example Celer Network (CELR). Altcoin is currently showing some of the same signals Elrond had in May.

In June, the CELR / BTC pair outperformed the 100-day and 200-day averages. It was the first time since the listing in March 2019.

Also, CELR is constantly changing previous support resistance levels and the trading volume increases, which is usually a sign of accumulation.

Currently CELR / BTC has a resistance of 0.00000070 and 0.00000100 sats. If the price can go above the level of 0.00000100 Sats, it is possible to continue towards 0.00000250 Sats or more.

For the moment, All eyes are on Binance Coin, and if it continues to rise, IEOs will most likely follow.

The views and opinions expressed here are solely those of author and do not necessarily reflect Cointelegraph’s views. Every step of investment and trading involves risks. You have to do your own research when making a decision.

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