- 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.
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.
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.
