Cryptocurrencies

BNB (BNB) price is trading below $600 after witnessing a two-day rally

BNB (BNB) price is trading below $600 after a two-day rally saw its value increase by 5.5% to reach a high of $605 on May 9.

BNB/USD daily chart. source: TradingView

Even with today’s pullback, data suggests that BNB price remains bullish on the longer time frame. The tier-1 token is up 83% over the past 30 days and 91% in 2024 alone to reach a multi-year $645 on March 16. This rally has put BNB 7% away from its all-time high of $690 reached in May. 10, 2021.

Since then, BNB has consolidated within a wide range, spanning from $500 to $620, leaving many traders wondering when the token will break out towards all-time highs.

Let’s take a look at the factors that could cause BNB to rise.

The Binance exchange remains the leader in trading volumes and market share

Binance remains the top cryptocurrency exchange by market share, even with a decline in trading activity in April.

After a wild legal ride in 2022 that ended with former Binance CEO Changpeng Zhao being sentenced to four months in prison and a $4.3 billion fine for the exchange, Binance has managed to regain its market share, which rose for five straight months between October 2023 and October 2023. March 2024 To more than 40%.

CCData shows that Binance still accounts for the bulk of spot volume across centralized exchanges despite its share falling by 3.69% in April to 33.8%.

Bnb (Bnb) Price Is Trading Below $600 After Witnessing A Two-Day Rally
Monthly AA-A spot exchange volumes. Source: CC Data

Binance’s dominance is confirmed by data from CoinMarketCap, which shows that the total 24-hour trading volume across all cryptocurrency exchanges stands at $63.63 billion, with $15.86 billion (24.9%) coming from Binance on May 10. Coinbase comes in second place, contributing to this. With just $3.35 billion, OKX is in third place with $2.29 billion.

Bnb (Bnb) Price Is Trading Below $600 After Witnessing A Two-Day Rally
Top spot cryptocurrency exchanges. Source: CoinMarketCap

Increased network activity supports BNB’s upside

BNB price movement over the past few days has led to more on-chain activity, reinforcing the growing importance of the BNB chain.

Data from DefiLlama shows that the total value of BNB chain locked (TVL) increased by 54% in 2024, indicating that users and developers are interacting more with the network.

The chart below also reveals that TVL rose from $4.99 billion on April 30 to $6.167 billion currently, which represents a 23.5% increase in May.

Bnb (Bnb) Price Is Trading Below $600 After Witnessing A Two-Day Rally
The total value is locked on the BNB chain. Source: Devilama

This increase in TVL coincides with a roughly 10% increase in price, from the lows of $536 on May 1 to the current level.

The increasing TVL value of BNB Chain indicates that users and developers are interacting more with the network.

More data from DappRadar reveals that the BNB chain remains a powerhouse among tier-1 chains, having handled 5.16 million transactions in the past seven days versus Ethereum’s 1.57 million transactions.

Bnb (Bnb) Price Is Trading Below $600 After Witnessing A Two-Day Rally
Top layer 1 blockchains. Source: Dab Radar

The figure above shows that BNB Chain leads the total number of decentralized applications (DApps), with more than 5,315 projects built on the blockchain, an increase of 8% from last week. This is significantly higher than the 54,572 DApps on Ethereum and 2,087 on Polygon.

The bull flag forecasts a 40% rise in BNB price

Data from Cointelegraph Markets Pro and TradingView show that BNB price is consolidating in a “bullish flag,” anticipating a massive breakout to new all-time highs, as noted by independent analyst World of Charts.

The analyst shared the following chart in a May 10 post on X, saying:

“$BNB shows strength from many #Alternative A successful breakout of the bull flag could lead to a massive bullish rally towards $1,000 in the coming days.

Bnb (Bnb) Price Is Trading Below $600 After Witnessing A Two-Day Rally
BNB/USD daily chart. source: The world of graphics

Fellow analyst Captain Vaibeck noted a similar market creation in a post on May 7, saying that BNB price was “on the cusp of another bullish rally, so keep it under the radar!!”

“In the event of a breakout, we expect an upside of +40%.”

The price is trading 15% below its all-time high at press time. The Moving Average Convergence Divergence (MACD) indicator is still in the positive territory above the zero line and is about to form a bullish crossover, indicating that market conditions are still in favor of an uptrend.

Bnb (Bnb) Price Is Trading Below $600 After Witnessing A Two-Day Rally
BTC/USD daily chart. source: TradingView

Key levels to watch are the pennant’s upper trend line at $610 and $650. The bulls need to turn these barriers into support before pushing the price towards the all-time highs at $690 and later to the technical target of the ruling chart pattern at $800. This would represent a 37% upside from the current price.

This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.

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