Binance Coin (BNB) has embarked on a recovery journey, witnessing a 3% surge that reclaimed the $300 level. This bounce-back follows a correction period in the wider cryptocurrency market, during which the coin pulled back from its eight-month high of $340 on December 28, 2023.
The historical data reveals the coin’s susceptibility to price volatility. The all-time high, recorded on May 10, 2021, at $690.93, has since experienced a significant decline of 57.51%. Over the last two months, it has displayed various trends and fluctuations in its price. Opening at $227.69 on December 1, 2023, the coin experienced both highs and lows, followed by a decline to $228.55 on January 1, 2024.
The market exhibited upward and downward trends during this period, with a recent 10.6% fall from January 21 to January 25, bringing the current trading price to $303.85.
Analysts observe a bull flag on the daily chart, signaling a potential uptrend continuation. Resistance is anticipated at the flag’s upper boundary of $316, with a breakout potentially propelling BNB to $450, representing a 48% ascent from the current price.
Key indicators, including the 50-day EMA, 100-day EMA, 200-day EMA, and RSI, all point upwards, indicating favorable market conditions. The recent increase in price strength from 40 to 50 suggests that bulls are buying on the dips. While bears may attempt to lower the price, the flag’s lower limit at $282 provides initial defense, followed by support from the 100-day EMA at $271 and a major level at $250.
BNB’s Recovery Grounded In Network Activity
Despite BNB’s recent weakness, the ongoing recovery is substantiated by increased network activity. A significant portion of BNB’s value stems from reduced trading fees and exclusive launchpad offers from Binance. Additionally, the newly launched “dual investment” product could further boost BNB’s volumes, which have surpassed $998 million in the last 24 hours.
Comparing BNB Chain to competitors, it leads in active unique addresses (UAW), with 2 million UAWs against Ethereum’s 359,380. The growth in DApp engagement and transaction volume on the BNB Chain has contributed to the increasing total value locked (TVL). Data from DefiLlama indicates a steady rise in BNB Chain’s TVL, reaching a peak of $3.73 billion on January 18, suggesting growing user trust in the blockchain.
Related Reading | Binance.US Faces Regulatory Restrictions In Alaska And Florida Following CEO’s Guilty Plea