BNB Price Prediction: BNB Flashes Buy as It Eyes Retest of $600 Level

BNB (BNB) has jumped by nearly 5% in the past 24 hours and seems to be aiming to retest the $600 level from below.

Trading volumes jumped by more than 50% during this period, although they are still quite thin when compared to the asset’s market cap, accounting for just 1.7% of this figure.

However, one technical indicator shows that positive momentum is accelerating rapidly and just flashed a buy signal today.

Tensions in the Middle East persist as Iran just threatened to hit the United States and “punish the aggressor today” with a military strike.

Meanwhile, the North American country hit its enemy with a “heavy wave” of strikes on Monday, escalating the conflict once again after failing to reach an agreement to fully reopen the Strait of Hormuz.

Oil prices have stood above the $80 level for days as a result, and market participants are now confident that the Federal Reserve will raise rates in September by at least 25 basis points.

The combination of a challenging macroeconomic backdrop and persistent geopolitical tensions has kept the market reeling and trading sideways for weeks.

Monthly BNB Transactions Keep Rising Alongside Daily Gas Used

For BNB, today’s strong jump above the $580 resistance could mean the beginning of another rally. However, market conditions remain unfavorable, and that could keep a lid on the token’s upside potential in the near term.

So, what exactly could be driving today’s jump? On-chain data shows that network utilization has been steadily increasing in the past few weeks, moving from a low of around 17% to nearly 30% as of today.

Moreover, transactions have increased from 424 million in February to 480 million as of June, while they are expected to close July at a similar level. Daily gas used is also on an uptrend, reflecting a steady increase in network usage. This could be prompting investors to revisit their valuation for BNB.

BNB Breaks Past Key Resistance at $580 and Could Eye Retest of 200-Day EMA

Heading to the daily chart, BNB seems to have bounced off the $560 level recently and just broke past the key $580 resistance after several tries.

Trading volumes jumped above the 14-day moving average, indicating strong conviction in the move and the relevance of this specific price level.

Meanwhile, the Relative Strength Index (RSI) just crossed above the 60 threshold, which is typically considered a buy signal as it indicates that positive momentum is accelerating.

We expect that this move could result in a retest of the 200-day exponential moving average (EMA) in the near term as long as the price manages to stay above the $580 threshold. That means a 10% upside potential for BNB.

This bullish breakout offers the chance to take a long position with a 2.5x risk-reward ratio. For this to play out, traders would need some patience to wait for the price to pull back a bit to $580 and use that as the entry.