BNB (BNB) price is up 5.5% in a two-day rally, trading below $600 after reaching a high of $605 on May 9.
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%.
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.
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.
This increase in TVL coincides with a roughly 10% increase in price from a low of $536 on May 1 to current levels.
Increasing TVL value on the BNB chain means users and developers are interacting more with the network.
More data from DappRadar shows that the BNB chain remains a powerhouse among layer 1 blockchains, processing 5.16 million transactions over the past seven days compared to Ethereum’s 1.57 million transactions.
The figure above shows that BNB Chain leads the total number of decentralized applications (DApps), with over 5,315 projects built on the blockchain, an 8% increase over the previous week. This is much higher than Ethereum’s 54,572 DApps and Polygon’s 2,087.
Bull pennant predicts BNB price to rise by 40%.
According to data from Cointelegraph Markets Pro and TradingView, the BNB price is expected to consolidate into a “bullish pennant” and surge past all-time highs, as observed by independent analyst World of Charts.
Sharing the following chart in a May 10 post on X, the analyst said:
“$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.”
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.
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.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.