- Support at $515 plays a crucial role; overcoming it could mark the restart of the ascent towards $550 and $580.
- Failure to overcome $520 could push BNB towards minor supports at $500, $470 and potentially $430.
After reaching resistance near $645, BNB stock began to correct lower. At the moment, the price is around $515, right at the 100 simple moving average on the four-hour chart, facing immediate resistance at $520. If this hurdle is not overcome, BNB could head towards lower supports located at $500, $470 and eventually $430.
The relevance of this support level lies in its ability to dictate BNB’s near-term trajectory. Holding above it could lead to a resumption of its upward momentum, with an eye towards resistance at $550 and $580. Breaching the $580 barrier could facilitate a significant advance towards $600 and possibly higher.
On the other hand, BNB’s inability to break the $520 resistance could translate into further selling pressure. The next critical supports are at $500, $470 and $430. A break below these points could precipitate a significant decline, bringing the price closer towards $400 or even $350.
Network Activity
Activity on Binance Smart Chain (BSC) has seen a significant increase, with total value locked in the network reaching $6 billion, representing a 54% increase in 2024. Data from DappRadar indicates that the BNB chain has processed 7.07 million transactions in the last 30 days, in contrast to Ethereum’s 1.2 million transactions.
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Market Share
Binance’s market share has seen steady growth for the fifth consecutive month since October 2023, rising to over 40%.
The escalation in Binance’s market share by surpassing 40%, which is a positive symptom for Binance and its token, BNB, and could be a precursor to a push towards record highs, marking a milestone in its history and the crypto market in general.
A decline in the number of transactions on the Binance blockchain marks a point of concern, evidencing possible user disinterest or a search for more profitable alternatives. This decline in transactional volume could suggest a weakening of BNB’s fundamentals, with potential repercussions for its share price.
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In addition, an elevated Relative Strength Index (RSI) hints that BNB may be overvalued, portending a correction. An RSI at overbought levels is usually interpreted as an exhaustion of buying momentum, portending possible pullbacks.
Despite these discouraging indicators, it is critical to recognize that BNB has posted 101% growth through mid-March 2024, benefiting from the overall cryptocurrency rally and the growing popularity of the Binance ecosystem.