At the current moment, Binance Coin [BNB] is being traded at $637, boasting a market capitalization of $90 billion. Over the past 24 hours, this altcoin has witnessed a 5% rise, contributing to a total weekly increase of nearly 10%.
The recent surge in BNB’s price aligns with a generally optimistic sentiment prevailing in the broader cryptocurrency market. The increasing activity on BNB Chain indicates a potential long-term upward trend for the digital asset.
BNB Chain Records 5M Daily Active Addresses
As per TokenTerminal data, the daily active addresses on BNB Chain have climbed to 5.1 million, surpassing Solana’s 4.2 million. Notably, BNB Chain has topped the list among both layer one and layer two networks in terms of address count.
A rising number of daily active addresses signifies a growing user base, which could lead to heightened demand for the token.
In addition, the former Binance CEO, Changpeng Zhao, has teased an upcoming upgrade for BNB Chain via a post on X (previously Twitter), hinting at ongoing improvements in the pipeline.
Network enhancements are typically aimed at enhancing scalability and usage, potentially benefiting the BNB token.
Surge in Network Activity to Drive the Rally
DappRadar data reveals a 42% surge in dApp volumes on BNB Chain over the last 30 days, totaling $52 billion. Concurrently, the transaction count experienced a 43% rise to 21 million during the same period.
Alongside the increasing dApp activity, the stablecoin market capitalization has steadily grown to almost $7 billion, according to DeFiLlama. Furthermore, the Total Value Locked (TVL) has surpassed $6 billion after dropping below this threshold early last week.
This upsurge in activity could significantly benefit BNB in the long run by driving up demand for the token and enhancing investor confidence.
BNB Breaks Resistance at the 200-day EMA
BNB’s daily chart reflects bullish signals. The presence of green volume histogram bars indicates a prevailing buying pressure dominating the selling pressure for six consecutive days.
Additionally, BNB successfully breached the crucial resistance level at the 200-day Exponential Moving Average (EMA) of $622, indicating a bullish shift in the long-term trend.
There is a possibility that the token might retest this level, and if it holds, it could trigger a surge towards the next resistance at the 50-day EMA ($657).
The Relative Strength Index (RSI) has exhibited a notable northward movement, suggesting an influx of buyers in the market. However, as the RSI remains below 50, more demand is essential to propel prices further upwards.
Long/Short Ratio Reveals Mixed Sentiment
Despite the encouraging network activities, the Long/Short Ratio stands at 1.03, indicating a sense of hesitancy among long traders.
Currently, only half of the traders have assumed long positions on BNB, while 49% are leaning towards short selling.
This equilibrium in the Long/Short Ratio points towards a neutral market sentiment, with long and short traders evenly positioned, potentially leading to diminished volatility.