BNB Ready To Break Above $300? Fundamentals Support Bulls
August 03 2022 - 10:53AM
NEWSBTC
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. 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. 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.
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. 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. 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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