Connect with us

Altcoins

Binance Coin [BNB]: Will these signals lead the light to $400

Published

on

Source: Canva

In July, the exchange token of the largest crypto exchange, Binance Coin [BNB], struggled. Despite reviving from its low levels in June, when it went as low as $192, BNB could not revert to its price in May.

However, investors would have given BNB its accolades for its July performance as it closed the month around $292. As per CoinMarketCap, the BNB price has not fallen below $300 since it last did in the first week of August. 

At press time, the coin was trading at $316.35, a 1.87% decrease from the last 24 hours. Nonetheless, BNB gained against the top two cryptocurrencies, indicating that the coin moved into the $400 zone in August the same way it left the 200s in July for the 300s this month.

Against Bitcoin [BTC], BNB increased 1.62% while it gained 3.31% over Ethereum [ETH].

Interestingly, BNB held onto a few other signs that could drive it to $400 beyond the gains.

Gaze at these

According to Santiment, BNB’s social dominance has spiked over the last two days. After a 14.79% rise between 13 August and 14 August, the dominance rose again.

At the time of this writing, social dominance had increased by 26.04% from the previous day.

Apart from this uptick, the thirty-day Market Value to Realized Value (MVRV) ratio revealed that the BNB price could be undervalued.

With investors increasingly taking profits due to the MVRV ratio around 9 August, the present 26.38% stance seemingly provides an opportunity to accumulate BNB before a likely uptick.

Source: Santiment

Additionally, the price decline has not led BNB to a volume decrease. In fact, the 24-hour volume had increased 6.87% to $1.12 billion. 

Source: Santiment

With these improvements, it may seem that BNB is moving towards performing better than what it achieved in the second quarter (Q2). So what other contributions could be reflecting this $400 possibility?

NFTs and licenses

Investors may, however, need to watch the rising interest in BNB. While it can drive a price rally, it could also reverse the momentum. This is because there was a 41% increase in the Binance Smart Chain (BSC) NFT sales volume for most of 15 August, according to CryptoSlam.

Although it had reduced 7.27% to $535,256 at press time, the transactions count had remained almost constant. There had been 2,624 transactions with 1,192 as buyers. 

Source: CryptoSlam

Interestingly, BNB may also get some support from the activities of its parent company, Binance. Lately, the exchange announced it had secured approval to operate in Kazakhstan after a series of expansions already in 2022.

So should investors expect more positive updates regarding the BNB ecosystem? Concluding might seem too hasty. However, the recent developments, if sustained, have the potentials to drive BNB to new highs.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.


Please select your Email Preferences.

Manisha is a News Editor at AMBCrypto. With a Master's degree focused on Mass Communication, Manisha is good at multitasking with an eye for detail. She is fascinated by new, emerging technologies and her interests lie in the regulatory implications of such tech.

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.