Binance Coin (BNB), the fourth largest cryptocurrency by market capitalization, could be on the verge of retesting $600. If achieved, the coin will erase some of the losses that ensured it is now 25% down from reaching its all-time high.
BNB price has increased by approximately 6% in the last seven days. Will the crypto register another positive return this week?
Investors Plan to Strengthen Binance Coin
During the August 5 market crash, BNB’s price fell as low as $403.90. This infamous incident also affected the Weighted sentiment around the coin, and on-chain data shows that it dropped to the negative region.
The decline at that time indicated fear among investors and triggered selling pressure. But at press time, this is no longer the case, as BNB’s Weighted Sentiment has now reached its highest level since June 5.
In simple terms, Weighted Sentiment measures the number of mentions expressed in a positive or negative manner. A positive reading implies that the average comment linked to a cryptocurrency is optimistic, while a negative reading suggests otherwise.
Read more: Best BNB Wallets to Consider in 2024
With a reading of 3.44, the metric indicates that most BNB-related commentary is bullish. If this positive sentiment holds, it could increase demand for BNB and potentially push its value beyond $535.50.
Another metric with the potential to move BNB’s price higher is the number of active users, which is the number of unique wallets engaged in transactions on the blockchain. According to Token Terminal, the weekly active users on BNB Chain were 3.20 million on August 10.
As of now, this number has surged to 4.50 million, marking nearly a 50% increase in just nine days. Higher user activity often correlates with increased demand, as greater adoption typically strengthens a cryptocurrency’s value by boosting transaction volume and market engagement.
Likewise, the lower the user count, the lower the chances of a price increase. Therefore, the rising number of activity on the chain, if maintained, could boost BNB’s potential to a higher value.
BNB Price Prediction: Bulls Remain in the Driver’s Seat
From a technical standpoint, Binance Coin’s (BNB) recent price correction seems to be over. The coin has broken above the symmetrical triangle formed between August 5 and 16, signaling a potential bullish breakout.
Symmetrical triangles can indicate either direction; breaking below the lower trendline confirms bearishness, while a break above the upper trendline suggests a rally. In BNB’s case, the upward move suggests bulls are aiming for the next resistance at $564.40.
The MACD, positioned above the signal line, further supports a bullish continuation.
Read more: Binance Coin (BNB) Price Prediction 2024/2025/2030
If bullish momentum persists, BNB could climb to $602.20, aligning with the 61.8% Fibonacci retracement level. However, if market sentiment shifts negatively, bears may regain control, potentially dragging BNB’s price down to $526.60 or even $479.80.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Victor Olanrewaju
https://beincrypto.com/market-sentiment-boosts-bnb-price/
2024-08-19 09:30:00
