- During a period when the overall altcoin market is facing selling pressure, most altcoins show weakness on the weekly chart.
- A well-known crypto market analyst suggests that Binance Coin may be in the process of forming a head and shoulders pattern.
- As of now, BNB Coin is trading at $251 with a market cap of $37.4 billion, showing a 2.37% decrease.
BNB price attracted attention with its strong performance in recent days: Will the rise for BNB continue? How many dollars is the target?
BNB Price to Sustain the Upward Movement?
During a period when the overall altcoin market is facing selling pressure, most altcoins show weakness on the weekly chart. However, Binance Coin (BNB), despite being a cryptocurrency that has performed poorly in the altcoin market, is currently showing strength.
A well-known crypto market analyst suggests that Binance Coin may be in the process of forming a head and shoulders pattern. The potential for a bullish breakout exists if there is a close sustained above the neckline at the $261 level; in that case, the target for BNB could be $310.
As of now, BNB Coin is trading at $251 with a market cap of $37.4 billion, showing a 2.37% decrease. The current trading value of Binance Coin (BNB) is $249, attempting to stay above the significant psychological level of $250. However, potential challenges awaiting buyers are at the critical trend indicator level of $258, which serves as a crucial level for BNB.
As the market continues to experience a recovery trend, there is a possibility of a bullish breakout for BNB beyond the $258 level, in which case the target could be $300. Traders closely monitor these significant levels for potential changes in the fate of BNB.
Strong On-Chain Metrics for BNB Coin
According to three significant on-chain metrics: Volume, Social Dominance, and Open Interest (OI), there are indications that the upward trend in Binance Coin (BNB) prices is sustainable. Analysis of BNB volume increases, according to Santiment data, is associated with increases that coincide with local peaks in the asset’s price. In particular, between November 12 and December 12, the increased BNB volume correlated with local peaks in the asset’s price.
The social dominance of Binance’s own token generally increases with BNB price increases, as shown in Santiment’s chart. Over the past six months, this pattern has occurred several times, emphasizing the significance and adoption of the asset among market participants. BNB’s social dominance has shown an upward trend since December 5, 2023.
Another important metric, Open Interest (OI), serves as an indicator of demand for an asset. Santiment data shows a steady increase in OI since November 12, almost a 31% increase in the last month. This indicates that the recent gains in BNB prices are likely supported by the increasing demand from new buyers entering the market.
