BNB Price News: Key Resistance Breakout Could Push BNB to $950

BNB (BNB) has stood out in the past month as the top-performing token in the top 5, with gains exceeding 11% during this period.

The native asset of the BNB Chain is now hitting $680 for a second time, and the odds of a bullish breakout are quite high as cryptocurrencies continue to recover.

Trading volumes rose slightly by 17% after BNB hit this key resistance, confirming that this is a highly contested price zone for both bulls and bears.

In the past 24 hours, BNB has been the only token in the top 5 to deliver a positive performance with a 2.8% gain. Meanwhile, in the past month, BNB has managed to outperform Ethereum (ETH) by 10%.

The market seems to be playing catch-up as ETH’s rivals like BNB and Solana (SOL) have lagged its competitors lately.

BNB Chain Holds This Edge Over Solana

The BNB Chain has an edge over Solana – its grip on Binance’s powerful ecosystem. Users can easily and cheaply receive and send asset transfers at a low cost via the BNB Chain and hold its native asset to access fee discounts and other perks.

This creates an incentive for long-term holding and active trading. That said, arguments against BNB include the network’s significant degree of centralization.

Data from Token Terminal indicates that this blockchain only has 45 active validators compared to Solana’s network of 771 nodes and Ethereum’s vast infrastructure, made up of 897,400 terminals.

On-Chain Data Signals the Start of a Recovery for BNB

Recently, application fees and social mentions have been increasing for BNB. This could be an early indication that the market’s interest in the network and its ecosystem is coming back.

First off, on-chain data from Artemis shows that application fees rose to levels that have previously marked the beginning of a bull market. What exactly could be fueling this? The upcoming approval of the Clarity Act in the United States could have prompted bulls to start positioning for a post-passing rally.

At $4 million last week, application fees rose to their highest since March and, also, to levels that have been characteristic during previous price expansions.

Meanwhile, data from Santiment shows a spike in social volumes for BNB to levels that have previously marked the beginning of bullish cycles for the token. In fact, social volumes increased to their highest since October last year, back when BNB peaked at $1,360.

The only cause of concern is that the most likely reason for this uptick was the latest token burn conducted by the BNB Chain team. A total of 1.6 million BNB tokens were taken out of circulation on April 15. These were worth approximately $1.5 billion.

Since massive token burns like these are commonly covered by crypto media outlets, this was probably the root cause of this increase in social mentions. Token burns have not been a major driver for bull markets in the past. In fact, they have been followed by strong downtrends in the past two quarters.

Weekly Chart Confirms Potential Cycle Bottom at $575

Low levels of decentralization within the BNB Chain have not prevented the BNB token from ascending to the top of the rank of most valuable assets in the crypto space. Recently, BNB reached an all-time high of $1,365. However, the latest bear market plunged the token to $575.

We believe that this could be the asset’s cycle bottom based on historical patterns in the weekly chart and an apparent shift in market sentiment.

Looking at the weekly time frame, we can see that BNB’s Relative Strength Index (RSI) recently hit 33 for the first time since September 2023. Back then, the token traded at around $200. Less than a year later, its price more than tripled.

This trend repeats across the crypto market, as the latest bear market plunged the price of digital assets to dramatic lows not seen in years. Right now, this appears to be another historical buying opportunity.

On previous occasions, a move above the signal line in the weekly RSI has marked the beginning of bull markets. We got that already. Hence, this might not be a bad time to start positioning for a strong recovery for BNB in the weeks to come.

We also got a bounce off the 200-week exponential moving average (EMA). This reflects that market participants are paying attention to this technical indicator. Our target for this bull market would be the latest all-time high at $1,360. This means a 100% upside potential over the next 12 to 18 months.

BNB Could Offer an Attractive 7X Trade If This Happens

Heading down to the daily chart, we can see that the price just retreated after hitting the $680 threshold. This means that the selling pressure is still strong at this level, and we could expect some turmoil over the next couple of days after seeing this.

The most likely landing zone if bulls fail to break that $680 barrier immediately would be the $650 level. This was a former resistance that should now act as support over the coming hours.

Despite this pullback, positive momentum remains strong as the RSI continues to be above the 60 level. This indicates a shift in market sentiment. Hence, price momentum favors a breakout in the near term.

The next hurdle that BNB must clear is the $720 level, as this is where the 200-day exponential moving average (EMA) currently sits. A break above that mark should unleash a sustained rally to $950 shortly afterward.

For now, we would prefer to wait until that $680 breakout is confirmed before taking a long position. Setting the $900 zone as the take-profit target for such a trade, the upside potential for this trade is huge at 7x.

It would require significant patience and could take weeks for that price target to be hit, but this is also one of the most interesting setups we have seen across the top 5 cryptocurrencies, exceeding our 4.7x play for Solana, and the most reward in terms of risk-reward ratio.