• Mon. Jun 17th, 2024

Binance Coin price analysis: Here’s why BNB is surging

The Binance Coin price has staged a strong recovery in the past few days as cryptocurrencies bounce back. BNB coin rose to a high of $300, which was the highest level since November 11 of this year. It has rallied by over 18% from its lowest level this month.

Why is BNB coin rallying

BNB Coin is the native coin for the Binance Smart Chain ecosystem, which is one of the most popular smart chains in the world. The smart contract platform has been used to build some of the best-known players in the industry like Bitgert, Venus, and PancakeSwap.

BNB Smart Chain is the second-biggest smart chain platform in the world after Ethereum. DeFi Llama tracks 502 DeFi apps built on the network. These apps have a combined total value locked of over $7.5 billion. It also has over $10.52 billion worth of stables, compared to Ethereum’s $89 billion and Tron’s $32 billion.

Some of the biggest DeFi apps in Binance are PancakeSwap, Venus, Alpaca Finance, and BiSwap. Still, PancakeSwap has a market dominance of 51%, making it the main driving force of the network. BNB Chain is also used widely in the NFT, gaming, and the metaverse industries.

It is unclear why the BNB coin has staged a strong recovery in the past few days. A possible reason is that its DeFi TVL has jumped by more than 6% in the past 24 hours. Another reason is that investors are simply buying the dip in the coin after it crashed to a multi-month low.

Meanwhile, there is a perception among investors that Binance is a safe ecosystem that won’t crumble like Genesis and FTX.

Another possible reason is that this could be a dead cat bounce. In price action analysis, a dead cat bounce happens when an asset rises sharply after plunging.

Binance Coin price prediction

                Binance Coin chart by TradingView

The four-hour chart also gives another reason why the Binance Coin price staged a comeback. As shown in blue, the coin has been forming a falling wedge pattern. In price action analysis, this pattern is usually one of the most accurate bullish signs. The coin has moved above the 25-day and 50-day moving averages while the Stochastic Oscillator has moved above the overbought level.

Therefore, there is a likelihood that the coin will continue rising as buyers target the key resistance at $325. At the same time, a retest to $275 is also possible. 

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The post Binance Coin price analysis: Here’s why BNB is surging appeared first on CoinJournal.