Binance Coin attacked the $340 barrier on May 1, but then rolled back. BNB has lost about 3% in the last 7 days, but onchain indicators are now giving positive signals
In May, BNB, the native token of leading cryptocurrency exchange Binance, continued to be influenced by the negative news background.
For example, the U.S. Justice Department recently accused Binance of violating sanctions against Russia.
And this week began for investors with the news that Binance suspended bitcoin withdrawals several times during the day due to a large number of suspended transactions.
In addition, Binance recorded a record volume of bitcoin withdrawals in parallel, which caused turmoil in the market.
On the other hand, however, the amount of fees for mining a block on the bitcoin network recently exceeded the main reward for mining the cryptocurrency for the first time since 2017.
The event occurred against the background of a sharp increase in the cost of transfers in the BTC network, possibly due to the interest of market participants in the Ordinals protocol, which helps to create NFT in the bitcoin network.
In this regard, some traders switched their attention to more efficient transaction alternatives, and this provided support to BNB during the last week.
In this regard, some traders switched their attention to more efficient transaction alternatives, and this provided support to BNB during the last week.
Positive signals in the BNB Chain network
Although the coin’s exchange rate failed to take the $340 barrier, some onchain indicators give hope that it’s too early to give up on bullish attempts.
Thus, this is indicated by a surge of activity in the BNB Chain network and the accumulation of token by whales.
According to Santiment, the daily active users (DAU) on the Web have increased significantly over the past seven days.
Between May 2 and May 9, this onchain metric strengthened by 27%, from 4,068 to 5,148, despite a 3% slump in the token’s exchange rate.
In the period from May 2 to 9, this onchain metric strengthened by 27%, from 4,068 to 5,148.
BinanceCoin (BNB) and daily active addresses.
This divergence in the rate and the number of active wallets is a bullish signal. The influx of new users could mean that the project is gaining market share from its competitors.
In this case, the price recovery remains only a matter of time.
In addition, large investors in BNB who own 100k or more. up to 1 million BNB, recently stopped selling coins after fixing profits in April.
According to Santiment, between May 3 and May 9, the Whales increased the size of their combined BNB reserves by 90,000. coins (about $28 million at current exchange rates).
This accumulation trend may suggest that whales are regaining confidence in the coin’s price prospects. Accordingly, their behavior may also affect other market participants.
BNB forecast: slight decline and reversal to $350
Historical trading patterns and an assessment of the current financial position of most BNB coin holders suggest that the next rally could reach $350.
Despite the recent drop in price, most crypto investors who bought BinanceCoin over the past month still remain in the 2% unrealized profit zone.
Historical data suggests that they may sell more until they reach breakeven when prices drop to $308.
However, if the bullish scenario works, the BNB exchange rate will bounce 5% toward $325 before encountering initial resistance.
If this resistance is broken, it could rise another 10% to the $355 area before the bears start regrouping.
And conversely, bears could derail this narrative if the price of BNB falls below the $308 target level.
Nevertheless, investors are likely to support the price at this level as they seek to avoid entering the position with a net loss.
Otherwise, the bullish outlook for BNB may actually be negated and bears may attack the next meaningful support level at $300.
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