By
Chimamanda U. Martha
April 25th, 2024
The Binance Smart Chain has also witnessed a 7% increase in the number of addresses engaging with its dApps over the past 30 days.
On December 26, the native cryptocurrency of the Binance Smart Chain registered an 11% increase in price, reaching its highest value since June. This pattern reflects a continuation of the trend that began last week when the price surged from $233 to $277, an 18% increase, before closing around $264. Although the price is currently experiencing a minor retracement from yesterday’s gains, the overall trend appears poised for further bullish moves, with BNB having increased by over 14% this week.
The sudden price increase has surprised many observers, considering the challenges currently faced by Binance. The company’s founder and former CEO Changpeng Zhao pleaded guilty to money laundering, resulting in billions of dollars in fines on the crypto exchange and significant personal penalties. As the case remains unresolved, the potential for additional fines and the risk of the former CEO facing up to 18 months in jail looms.
Typically, when such issues arise, people tend to distance themselves from the involved company, as evidenced by the significant withdrawals from Binance in the days following the incident and the bears pushing the price down from $272 to $228 last month. Despite all these, BNB bulls have remained resilient, driving the price beyond the November high.
BNB Targets $500 after Crucial Breakout
A careful analysis of the price action reveals that BNB is breaking out of a falling wedge pattern that has constrained its price since January 2022 when the downward and sideways trend began. A successful retest of this pattern could propel the price upward, targeting the top of the channel at around $500. However, this upward movement may encounter some minor resistance at key levels.
Additionally, this analysis aligns with the assessment of a prominent crypto analyst Captain Faibik who shared it with his 75,000 followers on his X account.
$BNB train has also left the Station..🚞
Expecting New All time High in first Half of 2024..📈#Crypto #BNB #Binance pic.twitter.com/9c0AGwiUH6
— Captain Faibik (@CryptoFaibik) December 27, 2023
Slight Increase in Onchain Activities and Other Possible Explanations
The Binance Smart Chain has witnessed a 7% increase in the number of addresses engaging with its dApps over the past 30 days. However, this alone may not sufficiently explain the unexpected rise in price.
However, given that Binance is the largest cryptocurrency exchange in the world by daily trading volume, it follows that the overall health of the crypto market would impact the price of BNB. If the market performs well, accompanied by high demand and positive news, the demand for BNB on Binance is also expected to increase, as the coin serves various functions within the ecosystem.
With major cryptocurrencies experiencing price increases since October, and some like Solana sustaining stable surges, the crypto market is displaying upward price momentum and positive sentiment.
As BNB is used for payment and to access certain privileges on Binance, such as being a verified merchant on Binance P2P, its price is expected to rise alongside increased adoption. It is worth noting that BNB may have experienced even greater price spikes had there not been significant withdrawals from Binance a few weeks ago.