As the broader altcoin market faces selling pressure, most of the altcoins have been showing weakness on the weekly chart. However, Binance Coin (BNB) which underperformed during the altcoin market, is now showing strength.
Binance Coin (BNB) Gearing for 20% Upside
Crypto market analyst Ali Martinez suggests that Binance Coin might be in the process of forming a head-and-shoulders pattern. The potential for a bullish breakout exists if there is a sustained close above the neckline at $261, with the trajectory pointing toward a target of $310 for $BNB.
As of press time, BNB Coin is trading 2.37% down at a price of $247 with a market cap of $37.4 billion. The current trading value of Binance Coin (BNB) stands at $249, hovering close to reclaiming the significant psychological threshold of $250. Nevertheless, potential challenges await buyers at the $258 level, serving as a crucial trend indicator for Binance.
As the market experiences an ongoing recovery trend, there are further indications of a potential bullish breakthrough beyond the $258 mark, with the prospect of reaching $300. Traders are closely monitoring these key levels for potential shifts in BNB’s trajectory.
Strong On-chain Metrics for BNB Coin
According to three significant on-chain metrics—Volume, Social Dominance, and Open Interest in USD—indications suggest that the upward trajectory of Binance Coin (BNB) prices is likely to be sustained. Analysis of BNB volume spikes, as per Santiment data, reveals a correlation with local tops in the asset’s price. Notably, between November 12 and December 12, instances of increased BNB volume coincided with local price peaks.
The social dominance of Binance’s native token typically rises alongside increases in BNB price, as illustrated in Santiment’s chart. Over the past six months, this pattern has occurred on multiple occasions, emphasizing the asset’s relevance and adoption among market participants. The social dominance of BNB has also been on an upward trend since December 5, 2023.
Another crucial metric, Open Interest (OI), serves as an indicator of demand for an asset. Santiment data shows a steady increase in OI since November 12, experiencing a nearly 31% rise in the past month. This further suggests that the recent gains in BNB prices are likely supported by heightened demand from new buyers entering the market.
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