Binance Coin (BNB) recently achieved a historic landmark by surpassing its previous all-time high and reaching a market valuation exceeding $100 billion on June 5. This milestone spurred significant interest from investors, leading to a substantial increase in daily trading volumes, which initially soared above $4 billion before settling at $1.8 billion.
Potential for Further Gains in BNB?
Despite a minor retracement, BNB’s current price stands at $696, marking a 1.4% increase within the past 24 hours and a 16.9% rise over the last week. Technical analysis presents a bullish outlook for the cryptocurrency, indicating potential for further appreciation.
The sustained upward trend in BNB’s price is bolstered by its performance above the 50-day and 200-day simple moving averages (SMA), key indicators of ongoing bullish momentum. Following market fluctuations due to Bitcoin’s rally in March 2024, BNB surged to $650 before consolidating and forming an ascending triangle pattern.
How Did Zhao’s Sentence Affect BNB?
On June 4, BNB broke out of the ascending triangle, hitting an all-time high of $716. Despite a recent price correction, market sentiment remains positive, with predictions suggesting BNB could soon reach $1,000. Key resistance levels include $732, $850, and the psychological barrier at $1,000, while the 50-day SMA is expected to provide support around $597.
The recent price surge coincided with former Binance CEO Changpeng Zhao’s imprisonment. Initially, the SEC’s legal actions against Zhao negatively impacted Binance, decreasing trading volumes and market share. However, strong community support for Zhao and Binance helped the exchange recover and regain momentum.
Investor Implications
– Monitor BNB’s price in relation to key resistance levels at $732, $850, and $1,000.
– Observe the 50-day SMA as a critical support level around $597.
– Anticipate potential volatility in response to legal developments and market sentiment.
– Consider the impact of new cryptocurrency listings on Binance’s trading volumes and BNB’s price.
In addition, Binance’s strategy to list major cryptocurrencies has significantly contributed to the uptick in trading volume and BNB’s price. The recent listing of Notcoin (NOT), in particular, has enhanced user engagement on the platform.