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Prices of most altcoins returned to the green this Thursday, with BTC once again trading at the key and symbolic $100,000 level. In that scenario BNB rises.
At the time of writing, BNB price is trading at $715, with daily gains of 4.03%, weekly losses of 2.27%, and monthly gains of 15%.
The Binance Smart Chain token continues to grow after the decline on December 10, which took it to weekly lows of $652. Let us remember that this Cryptocurrency had reached all-time highs at 793 USD.
What is driving the present rebound? Is it possible to expect another rally and new all-time highs for BNB?
Factors behind the BNB rally
BTC positioned and stabilized above $100,000 is the main factor driving investor enthusiasm towards altcoins. If the price of Bitcoin continues to trade above said key level, then it is possible to see further rallies in the market for smaller cryptocurrencies to BTC.
The second factor impacting the price of BNB is the growth of the Binance Smart Chain (BSC) network, which, according to data from DeFiLlama, already registers more than one million daily active wallets. This metric puts BSC above (even) Ethereum.
We can also relate the current rise in BNB to the expansion of the Binance exchange:
In the last year, the average BTC deposit on exchanges increased, from 0.36 BTC to 1.65 BTC. While the average USDT stablecoin deposit increased impressively, from $19,600 to $230,000.
The above metrics are likely to prompt large investors to be confident that the BNB price will continue to rise. In addition to the precedent of the historical maximum already reached.
Given all this, these factors together conspire a strongly bullish scenario that can be highly positive for BNB investors.
BNB Chart Analysis: Key Levels to Watch
In our BNB price charts the first thing we see is that the price is in a rebound scenario after the drop to $646.
The price of the token is now heading towards key levels that will define whether the bullish rally that took it to all-time highs continues or if it will experience a more pronounced correction than the previous one..
So the first key resistance level that the price must overcome, and where it has found difficulty in continuing to rise, is $727. This rally would lead the price to reach 730 USD and if it manages to stabilize at that level, it will face strong resistance at 762 USD.
The 795 USD, which corresponds to the all-time high, is also quite strong resistance and exceeding it could take the price to historical levels such as 880 USD (according to the Fibonacci extension levels).
Key levels of support to consider
In case the price fails to overcome the first resistance of $727, it could decline below $700 and find support as low as $691, around the 100 EMA.
The next floor would be at the important psychological line of $650 and if the price breaks through that level, then the next support would be around $626.
The last support line we will mention is the psychological level of $600. A break below this level could represent a reversal of the current uptrend..
For now, the RSI at 54.7 points shows slight control by the bulls and can be interpreted as the price trending towards neutrality in the short term.
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