Binance Coin Poised for a 20% Upside
Binance’s native BNB coin has exhibited notable strength on the technical chart, suggesting a potential 20% upside from current levels.
Despite a broader altcoin market facing selling pressure and displaying weakness on the weekly chart, Binance Coin (BNB) has emerged as a resilient performer after a period of underperformance.
Technical Analysis and Potential Breakout
Crypto market analyst Ali Martinez points out the possibility of Binance Coin forming a head-and-shoulders pattern. A bullish breakout is anticipated with a sustained close above the neckline at $261, targeting a trajectory toward $310 for $BNB.
As of the latest update, BNB Coin is trading 2.37% down at $247 with a market cap of $37.4 billion. The current trading value hovers close to the significant psychological threshold of $250. Buyers may face challenges at the $258 level, a crucial trend indicator for Binance.
Amidst an ongoing market recovery trend, there are indications of a potential bullish breakthrough beyond the $258 mark, with a prospective target of $300. Traders are closely monitoring these key levels for potential shifts in BNB’s trajectory.
On-chain Metrics Supporting Upside Potential
Three significant on-chain metrics—Volume, Social Dominance, and Open Interest in USD—suggest that the upward trajectory of Binance Coin (BNB) prices may be sustained.
- Volume: Analysis of BNB volume spikes, according to Santiment data, reveals a correlation with local tops in the asset’s price. Notably, instances of increased BNB volume coincided with local price peaks between November 12 and December 12.
- Social Dominance: Binance’s native token’s social dominance typically rises alongside increases in BNB price, as illustrated in Santiment’s chart. Over the past six months, this pattern has occurred on multiple occasions, emphasizing the asset’s relevance and adoption among market participants. The social dominance of BNB has also been on an upward trend since December 5, 2023.
- Open Interest (OI): Serving as an indicator of demand for an asset, Santiment data shows a steady increase in OI since November 12, experiencing a nearly 31% rise in the past month. This suggests that the recent gains in BNB prices are likely supported by heightened demand from new buyers entering the market.
BSCN is aiming to become the leading media coverage platform around the Binance Smart Chain Ecosystem. With a strong focus towards Content Quality, Decentralized platforms, Hot topics in the market, Informative and education sources and guidance in how to be more aware around unreliable crypto projects.
