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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

BNB Ready To Break Above $300? Fundamentals Support Bulls

Reynaldo Marquez
Reynaldo Marquez
2 years ago
2 mins read
BNB

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Binance Coin (BNB) has been moving sideways around the critical level at $300 and might gather momentum for a rally. The cryptocurrency saw significant losses over the past months, but it has been able to recover faster than other altcoins.

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At the time of writing, BNB’s price trades at $290 with a 4% and 17% profit over the past 24 hours and 7 days, respectively. Thus, making this cryptocurrency one of the best-performing assets in the crypto top 10 by market cap only surpasses Polkadot’s (DOT) 22% profit in one week.

Binance Coin BNB BNBUSDT
BNB’s price with minor gains on the 4-hour chart. Source: BNBUSDT Tradingview

Data from Material Indicators records an increase in buying pressure for this token on short timeframes. Retail investors and mid-size investors have been jumping into BNB’s price action as the cryptocurrency attempts to flip $300 into support.

Additional data shows that ask liquidity for the BNB/USDT trading pairs has been reducing between $300 and $320 recording a high amount of sell orders. There are over $2 million in asks orders around those levels, and there is a lot of potential for price volatility.

This is because the order book records liquidity gaps between higher levels. This could translate into bullish momentum if the price of BNB is able to break above those critical resistance levels.

Binance Coin BNB BNBUSDT MI 1
BNB’s price shows a reduction of ask liquidity on short timeframes. Source: Material Indicators

However, in order to continue the bullish trend, the price of BNB might need assistance from larger investors. BNB whales have been sitting on the sidelines for the time being with no interaction with the price action.

If whales decide to buy and sustain the bullish momentum, the cryptocurrency might successfully break above $300. According to the crypto community, the CEO of Binance Changpeng “CZ” Zhao hinted at potential price appreciation for this token when he posted the following tweet:

BNB Impervious To The Crypto Winter

Research firm Messari highlighted the growth in BNB developments as the crypto market trends to the upside. This has translated into an uptick in total value locked (TVL) for the Binance Smart Chain ecosystem as the Ethereum ecosystem lags.

Binance Chain BNB BNBUSDT
Source: Messari via Twitter

The Binance Smart Chain ecosystem has also recorded an increase in its non-fungible token (NFT) trading volume and its GameFi activity. In other chains, these metrics have been trending to the downside as user interest follows the general sentiment in the market.

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James Trautman, an analyst at Messari, believes BNB’s recent strengthening of its fundamentals is mainly based on the collapse of the Terra ecosystem. This left a big hole for crypto users looking for a low-cost blockchain which Binance Smart Chain seems to be filling. Trautman said:

Ultimately, NFTs, GameFi, and to some extent the Terra collapse, brought more unique users to the BNB Chain ecosystem. The resulting user adoption and its deflationary fee-burning mechanism contributed to BNB Chain’s resilience and outperformance of its peer group during Q2.

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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