Binance coin [BNB]: Will these signals lead the candle to $400

In July, the exchange token of the largest crypto exchange, Binance coin [BNB], struggled. Despite reviving from its June lows, when it went as low as $192, BNB was unable to return to its May price.

However, investors would have given BNB its accolades for its performance in July as it ended the month around $292. As per CoinMarketCapThe BNB price has not fallen below $300 since it last did in the first week of August.

At press time, the coin was trading at $316.35, down 1.87% from the last 24 hours. Nevertheless, BNB rallied against the top two cryptocurrencies, indicating that the coin moved into the $400 zone in August just as it left the 200s in July for the 300s this month.

Against Bitcoin [BTC]BNB increased 1.62% while it rose 3.31% above Ethereum [ETH].

Interestingly, BNB held onto a few other signs that could take it to $400 beyond the gains.

Look at these

According to Santiment, BNB has social dominance spiked the last two days. After a 14.79% increase between August 13 and August 14, dominance rose again.

At the time of writing, social dominance had increased by 26.04% from the previous day.

Apart from this rally, the thirty-day market value to realized value (MVRV) ratio revealed that the BNB price could be undervalued.

With investors increasingly taking profits due to the MVRV ratio around August 9, the current stance of 26.38% appears to present an opportunity to accumulate BNB before a likely rally.

Source: Sentiment

In addition, the price decline has not led BNB to a volume decline. In fact, the 24-hour volume had increased 6.87% to $1.12 billion.

Source: Sentiment

With these improvements, it may appear that BNB is moving towards performing better than it is achieved in the second quarter (Q2). So what other contributions might reflect this $400 opportunity?

NFTs and Licenses

However, investors may have to watch the growing interest in BNB. While it can drive a price rally, it can also reverse the momentum. This is because there was a 41% increase in Binance Smart Chain (BSC) NFT sales volume for most of August 15, according to CryptoSlam.

Although it had decreased 7.27% to $535,256 at press time, the number of transactions had remained almost constant. There had been 2,624 transactions with 1,192 as buyers.

Source: CryptoSlam

Interestingly, BNB may also get some support from the activities of its parent company Binance. Recently, the exchange announced that it had hedged approval to operate in Kazakhstan after a series of expansions as early as 2022.

So should investors expect more positive updates regarding the BNB ecosystem? To conclude may seem too hasty. However, the latest developments, if sustained, have the potential to propel BNB to new heights.

Leave a Reply

Your email address will not be published.