- Despite a market downturn driven by rising inflation, Binance Coin (BNB) has surged, surpassing Solana in market capitalization and gaining 17.7% in a week due to strong buying momentum and increasing activity on the Binance Smart Chain.
- While BNB faces resistance at $692, a breakout could push it past $700, though traders should remain cautious of potential pullbacks.
The cryptocurrency market has been facing a downturn following the latest Consumer Price Index (CPI) data, which revealed a rise in inflation for the fourth consecutive month. Despite the gloomy sentiment, Binance Coin (BNB) has been defying the odds, experiencing a strong upward trend. It recently surpassed Solana in market capitalization, sparking optimism among investors. With on-chain metrics improving, the question arises: Can BNB surge past $700?
BNB Defies Market Trends
While major cryptocurrencies like Bitcoin and Ethereum suffered a nearly 2% drop, BNB has remained resilient. Over the past week, its value has jumped by approximately 17.7%, with a notable 6.1% increase in just the last 24 hours. This rise comes despite the overall bearish sentiment in the market and a negative funding rate for BNB.
A key driver behind this bullish momentum is the liquidation of short positions. Data from Coinglass reveals that BNB saw approximately $436,000 in liquidations within a single hour, with $435,000 coming from short sellers. This suggests that many traders betting against BNB were caught off guard, fueling further price increases.
BSC’s On-Chain Growth Fuels Momentum
Another critical factor in BNB’s rise is the impressive growth of the Binance Smart Chain (BSC). Recent reports indicate a 115% increase in BSC’s transaction fees over the past week, in contrast to declining activity on other major blockchains like Solana and Ethereum. This spike in on-chain activity coincides with Binance’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), which recently saw a 60-day pause, potentially providing short-term relief for the platform.
Price Outlook: Can BNB Hit $700?
Currently, Binance Coin is trading at around $669, having successfully broken through a key resistance level at $650. Its next target is the $692 mark, though it faces strong resistance at this level. If BNB manages to break past $692, it could surge to $745 in the near term.
However, traders should remain cautious. The Relative Strength Index (RSI) stands at 75, indicating an overbought market condition, which could lead to a pullback. Additionally, the long/short ratio of 0.7203 suggests that more traders are anticipating a decline, with 58% expecting a drop compared to 42% predicting a further rally.
Final Thoughts
Despite market-wide uncertainty, Binance Coin continues to showcase resilience. With strong buying momentum, increasing on-chain activity, and a favorable technical outlook, BNB appears poised for further gains. However, traders should watch out for key resistance levels and potential market corrections. If bullish momentum holds, a move past $700 could be on the horizon, making BNB a coin to watch in the coming weeks.
