Since March, Binance Coin [BNB] on the Binance Smart Chain has managed to stay above the $500 mark, defying the trend seen in many other top cryptocurrencies that have experienced significant drops from their highs earlier in the year.
In June, BNB reached a new local peak, demonstrating its strong utility despite occasional dips below $500, quickly followed by recoveries.
Recently, the price saw a bearish trend, dropping to as low as $471 on September 6th before bouncing back.
As per the latest data, BNB is currently trading at $509.6, indicating consistent demand below the $500 threshold. Analysis shows that BNB has been moving in a sideways pattern with noticeable fluctuations since March.
By examining the price chart, it becomes apparent that there are clearly defined support and resistance levels based on the most recent swing highs and lows. These patterns suggest that the price may be gearing up for a new uptrend.
If this scenario unfolds, BNB could potentially see a surge of over 15%, aiming to surpass the next significant resistance level above $590.
Evaluating the Potential of the BNB Chain
BNB has already seen a 7% increase from its recent low to the current price amid growing expectations of an altcoin season resurgence following a decline in Bitcoin’s dominance.
The momentum that BNB maintains will be influenced by the demand for the coin and the level of activity on the Binance Smart Chain.
Recent on-chain data shows a 6.19% rise in weekly active addresses, indicating some increased engagement. However, there was a slight decrease in weekly transactions by 1.1%, as well as a drop in network fees over the weekend.
These metrics are crucial as they reveal the organic demand within the BSC ecosystem. A thriving network activity typically spurs more interest in BNB, subsequently impacting its price movement.
Periods of heightened market confidence, particularly in altcoins, tend to coincide with increased demand for BNB.
Regarding trading volume, insights from on-chain data signify a notable decrease over the past five months, intensifying in the last couple of weeks due to rising market uncertainties.
A potential resurgence in altcoin activity could spark a revival in on-chain volume, approaching levels last witnessed in March.
In such a scenario, as long as there is a substantial uptick in demand, BNB stands to benefit. Conversely, any further decline from the current price level might provoke a wave of panic selling among investors.