BNB Stays Bullish: Trading Below $600 After Recent Surge, Poised for Future Growth
Summary:
BNB (BNB) is currently trading below $600 following a 5.5% increase over two days. Despite this, data shows a long-term bullish trend for the coin. Backed by Binance as the leading crypto exchange platform, BNB has experienced significant growth, registering an increase of 83% over the past month and 91% in 2024 alone. Despite a drop in April, Binance continues to dominate in market share and spot volume. An increase in on-chain activity and a bullish pennant pattern indicate potential for BNB's value to rise further.
After a two-day price surge, BNB (BNB) is now trading under $600 seeing a 5.5% appreciation in its value that peaked at $605 on 9th May. Despite this, data shows the currency still holds a bullish stance when viewed from a long-term perspective. Over the past month, the Layer 1 token has jumped 83%, and since the start of 2024, it has soared by 91% to reach a multi-year height of $645 on 16th March. This close to a 7% approach to its historical peak of $690 achieved on 10th May, 2021. Offering scope for speculation, the BNB has since oscillated between $500 to $620, causing many to wonder when it will finally ascend towards the record highs. Let's review some factors that might push BNB upwards. Despite an April reduction in trading activity, Binance remains the market-leading crypto exchange by market share. Binance masterfully made a recovery after a tumultuous legal episode in 2022 ended with its former CO, Changpeng Zhao, getting a sentence of four months in prison and a $4.3 billion fine. Data by CCData reveals that despite a 3.69% drop in April to 33.8%, Binance continues to dominate spot volume amongst centralized exchanges. As of 10th May, the 24-hour trading volume across every crypto exchange was a whopping $63.63 billion, with Binance contributing $15.86 billion (24.9%). Meanwhile, Coinbase and OKX followed, with contributions of $3.35 billion and $2.29 billion respectively. The recent BNB price action has caused an influx in on-chain activity, thus reinforcing BNB Chain's increasing significance. DefiLlama's data indicates a 54% surge in the BNB Chain’s total value locked (TVL) in 2024, suggestive of increasing user and developer network interaction. The chart also reveals that TVL shot up from $4.99 billion on 30th April to a present $6.167 billion, reflecting a 23.5% rise in May. Alongside this, an approximate 10% surge in price can be seen. DappRadar's data demonstrates that the BNB Chain remains a leading force among Layer 1 blockchains, having handled 5.16 million transactions over the past week, compared to Ethereum’s 1.57 million transactions. Cointelegraph Markets Pro and TradingView data shows BNB’s consolidation within a "bullish pennant", indicating possible breakout towards new record fame. Independent analyst, World of Charts, corroborates this and suggests a bullish market upswing towards $1000 in the forthcoming days. This prediction reflects a 15% dip from the all-time high at the time of this news release. The possible bullish cross noted on the moving average convergence divergence (MACD) indicator signals a continued favorable market outcome. Key points of interest are the pennant's upper trendline at $610 and $650. Clambering up from the current position to the chart pattern's technical target at $800 would represent a 37% rise in value. This news item contains no recommendations or advice for investments. Readers are advised that every investment and trading step carries risks, therefore, independent research is critical before making any decision.
Published At
5/10/2024 10:15:00 PM
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