BNB Price News: Can BNB Reach $1,000 Again? Key Levels to Watch

BNB (BNB) by 9% in a month, but the market seems to have found a floor recently at around $800.

Now, the Federal Reserve has just cut interest rates, and market sentiment seems to be improving. As a result, BNB has jumped to $888, and investors are probably wondering if it can jump back to $1,000 or even higher.

Let’s have a look at what on-chain data has to say about the state of the market and the BNB ecosystem.

BNB Open Interest (OI) – Source: CoinGlass

First up, open interest (OI) in BNB futures has dropped from a peak of $3 billion in early October to just $1.4 billion at the time of writing, as traders were rattled by the October 10 flash crash.

This is consistent with traders’ behavior across all tokens, and it is a bearish factor to consider, as low volumes in the futures market typically result in fairly muted price action.

Meanwhile, daily transaction volumes peaked around that date and started to drop right after, moving from 31.3 million to 15.4 million. Low network activity also favors a bearish outlook, as it indicates that the BNB ecosystem is not nearly as active as it was a few months ago.

DEX Volumes Have Dropped by 75% Since Early November

Similarly, we can see that weekly DEX trading volumes have been on a downtrend since then as well. Although they picked up a bit during the first week of November, they resumed their downtrend and have now retreated by as much as 74% since their October peak.

Weekly DEX Volumes on the BNB Chain – Source: DeFi Llama

Finally, stablecoin balances on the BNB Chain have declined by around $1 billion since October as well, possibly as investors have opted to move their funds off-chain as they wait for the dust to finally settle.

As long as speculators stay off the market, climbing to higher highs will be much more difficult as it would be up to the spot market to do all the heavy lifting.

Back when BNB hit $1,000 for the first time, OI hit $2.4 billion. Hence, open interest should first rise above $2 billion to start seeing some interesting price action toward this psychological threshold.

BNB Needs to Break Above $900 to Kickstart a New Rally

Looking at the daily chart, two scenarios pop up for BNB before the year ends. The first involves a move above $900 – a key level that has acted as both support and resistance multiple times in the past.

BNB/USD 4-Hour Chart (Binance) – Source: TradingView

This price zone also carries a psychological weight. The price just hit this mark and has shown early signs of rejection. Nonetheless, there’s a trend line support right below it that could cushion this temporary setback.

If we get a bullish breakout above $900, the price could set course toward $980 at least in a couple of weeks, especially if the move is accompanied by strong volumes or a price imbalance (fair value gap).

Meanwhile, a break below the trend line support shown in the chart could push BNB back to the low 800s in the near term.

Momentum is currently on the side of bulls as the Relative Strength Index (RSI) has climbed out of oversold territory. Nonetheless, we would like to see a more decisive climb above the mid-line and away from the 14-day moving average to confirm that positive momentum is gaining traction.