Binance Coin, (BNB), has been drifting around $300 at the critical level and could be poised for a rally. The cryptocurrency suffered significant losses in the last months but has managed to rebound faster than most 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.
Material Indicators data shows that there has been an increase in the buying of this token over a short period. Retail investors and mid-size investors have been jumping into BNB’s price action as the cryptocurrency attempts to flip $300 into support.
Data further shows that BNB/USDT pairs have seen their ask liquidity decrease between $300 to $320. This has led to a significant increase in sell orders. These levels have more than $2 million of asks orders, which means there’s a lot potential for price volatility.
Because the order books record liquidity gaps between higher levels, this is why. If BNB’s price can break above these critical resistance levels this could indicate bullish momentum.
BNB may need support from large investors to keep the bullish trend going. BNB Whales remain on the sidelines, and have not had any interaction with price action.
Whales could decide to purchase cryptocurrency and help sustain bullish momentum. The crypto currency might break through $300. According to the crypto community, the CEO of Binance Changpeng “CZ” Zhao hintedHe tweeted the following:
BNB Ignorant To Crypto Winter
Messari, a research firm, highlighted BNB’s growth as the market for crypto continues to trend upward. As the Ethereum ecosystem is behind, this has led to an increase in the total value locked (TVL), for Binance Smartchain ecosystem.
Binance Smart Chain also saw an increase of its NFT trading volume (non-fungible token) and GameFi activity. Similar trends have occurred in other chains. This is because user interest is correlated with the overall sentiment of 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. It left an enormous gap for crypto users searching for low-cost, reliable blockchains. Binance Smart Chain appears to have filled that hole. Trautman said:
NFTs, GameFi and, to a lesser extent, the Terra collapse brought in more users to BNB Chain. The resulting user adoption and its deflationary fee-burning mechanism contributed to BNB Chain’s resilience and outperformance of its peer group during Q2.