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Home»ALTCOIN NEWS»3 Reasons Why Traders Set $800 Target for BNB Price
ALTCOIN NEWS

3 Reasons Why Traders Set $800 Target for BNB Price

By Crypto FlexsMay 10, 20244 Mins Read
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3 Reasons Why Traders Set 0 Target for BNB Price
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BNB (BNB) price is up 5.5% in a two-day rally, trading below $600 after reaching a high of $605 on May 9.

BNB/USD daily chart. source: TradingView

Despite today’s decline, data shows that BNB price remains strong over the long term. The layer 1 token has surged 83% in the past 30 days and 91% in 2024 alone, reaching a multi-year high of $645 on March 16. The rally brought BNB within 7% of its all-time high of $690 reached in May. October 10, 2021.

Since then, BNB has consolidated within a wide range from $500 to $620, leaving many traders wondering when the token will break its all-time high.

Let’s take a look at what could potentially send BNB higher.

Binance exchange still leads in trading volume and market share.

Binance remains the top cryptocurrency exchange in terms of market share despite a decline in trading activity in April.

After a bitter legal battle that ended in 2022 with former Binance CEO Changpeng Zhao being sentenced to four months in prison and a $4.3 billion fine against the exchange, Binance has seen its market share rise for five consecutive months starting in October 2023. I recovered. This will increase to over 40% by March 2024.

According to data from CCData, Binance continues to account for a larger share of overall spot trading volume on centralized exchanges, despite its share declining 3.69% in April to 33.8%.

Monthly AA-A spot exchange volume. Source: CCData

Binance’s dominance is confirmed by data from CoinMarketCap, which shows that the total 24-hour trading volume across all cryptocurrency exchanges reached $63.63 billion, of which Binance accounted for 15.86 billion as of May 10. dollars (24.9%). Coinbase contributed by taking second place. With only $3.35 billion, OKX ranked third with $2.29 billion.

The best cryptocurrency spot exchange. Source: CoinMarketCap

BNB’s upward trend is supported by increased network activity

BNB’s price action over the past few days has resulted in more on-chain activity and made the BNB chain more relevant.

According to data from DefiLlama, the total TVL (locked value) of the BNB chain has increased by 54% in 2024, indicating that users and developers are interacting with the network more.

The chart below shows that TVL has increased from $4.99 billion on April 30 to $6.167 billion today, a 23.5% increase in May.

Total value locked in the BNB chain. Source: DefiLlama

This increase in TVL coincides with a roughly 10% increase in price from a low of $536 on May 1 to current levels.

Increasing TVL value on the BNB chain means users and developers are interacting more with the network.

More data from DappRadar shows that the BNB chain remains a powerhouse among layer 1 blockchains, processing 5.16 million transactions over the past seven days compared to Ethereum’s 1.57 million transactions.

Top layer 1 blockchain. Source: DappRadar

The figure above shows that BNB Chain leads the total number of decentralized applications (DApps), with over 5,315 projects built on the blockchain, an 8% increase over the previous week. This is much higher than Ethereum’s 54,572 DApps and Polygon’s 2,087.

Bull pennant predicts BNB price to rise by 40%.

According to data from Cointelegraph Markets Pro and TradingView, the BNB price is expected to consolidate into a “bullish pennant” and surge past all-time highs, as observed by independent analyst World of Charts.

Sharing the following chart in a May 10 post on X, the analyst said:

“$BNB is gaining ground among many. #how A successful breakout of the bullish pennant could lead to a massive bullish rally towards $1000 in the coming days.”

BNB/USD daily chart. source: world of charts

Fellow analyst Captain Faibik observed a similar market forming in a May 7 post, saying BNB price is “on the verge of another bull rally, so be on your radar!!”

“In case of a breakout, a +40% bullish rally is expected.”

Prices are trading 15% below their all-time high at the time of announcement. The Moving Average Convergence Divergence (MACD) indicator is still in positive territory above the zero line and expected to produce a bullish crossover soon, suggesting that market conditions are still favoring an uptrend.

BTC/USD daily chart. source: TradingView

Key levels to watch are the pennant’s upper trendline, $610 and $650. Bulls will need to turn this barrier into support before pushing the price to an all-time high of $690 and later $800, the technical target of the dominant chart pattern. This represents a 37% increase over the current price.