BNB price bound for new highs as Binance users can now earn up to 27.49% APY
- Binance Coin price gains over 20% on the news of significant staking rewards.
- The highest annual percentage yield (APY) is given to the 15-day lock-up.
- BNB has defined a pennant continuation pattern after quick gains.
From February 19 to February 23, BNB declined over 45%. The price action since has been constructive, with the volume profile showing no further distribution before its explosive reaction to the staking news.
Earning while holding BNB
The native coin of the Binance Chain, BNB, has many use cases, including driving on-chain transactions, paying for transaction fees on Binance Exchange, and making in-store payments, to name a few.
Now, Binance Staking is adding support for BNB holders. The new high yield activity allows users to earn 8.49% to 27.49%, depending on the lock-up period's duration.
The 30 days lock-up offers 8.49% APY and has a maximum limit of 5,000 BNB per user. The 60 days lock-up offers 12.49% APY and has a maximum limit of 500 BNB per user. The 90 days lock-up offers 16.49% APY and has a maximum limit of 100 BNB per user.
The highest annual percentage yield of 27.49% is for the 15-day lock-up, but users are limited to deposits of just 5 BNB tokens in this offering. A minimum staking limit of .1 BNB tokens is applied to all offerings, and the locked staking format is based on a first-come, first-served basis.
Users can redeem earlier than the lock-up period duration but are at risk of losing the interest they have earned on their BNB tokens had they held throughout the entire period.
Binance Coin price is breaking out
Binance Coin price has shaped a textbook pennant formation while trending sideways around the .618 Fibonacci retracement level of the February decline.
Based on the robustness of the formation and the bullish volume profile, BNB is ready to test the all-time high of $347 in the short-term. Such an upswing would represent a gain of 23% from the current levels.
BNB/USD 4-hour chart
A break below the rising trendline at $282 could signal that the breakout has failed. If the selling accelerates, the next important support price is $260.
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