BNB’s Weekly DEX Trading Volumes Hit 3-Year Peak – Could $800 Be Next?
At the current moment, Binance Coin [BNB], positioned as the sixth-largest cryptocurrency with a market cap of $100 billion, has experienced a 2% increase in the last 24 hours, reaching a trading value of $697. This rise reflects a minor recovery trend observed in the broader market as well.
In early December, BNB reached an all-time high of $793. Since then, attempts to surpass this level and potentially break the $800 barrier have faced significant resistance at $722. Nevertheless, the increase in DeFi activity might play a role in facilitating this potential breakthrough in the near future.
DEX Volumes Surge to $17.74 Billion
Information provided by DeFiLlama indicates that the weekly DEX trading volumes on BNB Chain have soared to $17.74 billion, marking the highest level seen in the last three years.
The main contributors to this growth are PancakeSwap and THENA, which have experienced a 298% and 111% rise, respectively, in their weekly volumes.
This upward trend indicates a positive outlook for BNB, serving as the native token for this blockchain platform. As the network attracts more users for DEX transactions, the demand for BNB could increase, potentially fueling a surge in its market value.
Alongside the positive sentiment surrounding the BNB Chain, the token’s daily chart reveals bullish patterns that might support a breakthrough beyond $800.
Assessment of BNB’s Ascending Triangle Pattern
The daily chart for BNB shows that it is following an ascending triangle pattern, suggesting a predominance of bullish sentiment. The upper limit of this pattern is currently set at $722.
A breach of this level by BNB could lead to a sustained upward trajectory. Furthermore, the Relative Strength Index (RSI) has shifted upwards and crossed the 50 mark, signaling a resurgence in buyer activity. If purchasing momentum gains traction, it could contribute to a breakout towards the 1.618 Fibonacci level, currently positioned at $823.
However, traders should remain cautious about the bearish signals highlighted by the red bars on the Awesome Oscillator (AO). A scenario where the bears regain control and push the price below the support level of the ascending triangle’s lower limit could potentially negate the bullish outlook.
Is BNB Primed for a Short Squeeze?
Examining BNB’s liquidation heatmap with a 24-hour timeframe reveals a significant concentration of liquidations looming above the current price point. Should BNB surge beyond $706 and activate these liquidations, a short squeeze might occur, compelling short sellers to cover their positions by purchasing, consequently stimulating an upward trend.
Additionally, there exists another liquidation threshold below the current price around $678. If BNB drops below the lower boundary of the ascending triangle and descends to this level, resulting in long positions being liquidated, it could further drive the price downwards.
Therefore, traders are advised to monitor the critical support level situated at the 0.5 Fibonacci mark of $681, as a breach of this threshold could reinforce the bearish scenario.