- BNB recently dipped below $500, which resulted in a resurgence of buy pressure.
- Assessing the potential implications for price in case it maintains momentum.
Binance Smart Chain’s Binance Coin [BNB] has demonstrated resilience above the $500 price level since March. An interesting outcome, since most top coins are now heavily discounted from March highs.
BNB has even gone on to achieve a new local high in June, signaling robust utility. Of course, there have been a few occasions here and there. where price dipped below $500, followed by rapid recovery.
This includes its recent bearish performance in the last few weeks, which saw it dip as low as $471 on the 6th of September.
BNB exchanged hands at $509.6 at press time, once again confirming strong demand below $500. Zoning out reveals that BNB has been trading sideways with significant up and down swings since March.
Source: DeFiLlama
The above price chart demonstrated clear support and resistance in the last two swing lows and swing highs. Based on these observations, price appears to be building up momentum towards another swing high.
If this plays out, then BNB could be due for another 15% plus rally until the next major resistance level. An outcome that could push the price above $190.
Assessing BNB chain’s prospects
BNB was already up by over 7% from its latest weekly low to its press time price. This coincides with a recent spike in altseason expectations, following a slide in Bitcoin dominance.
However, BNB’s ability to maintain the current momentum will depend on demand for the token, and activity in the Binance smart chain.
Dune on-chain data revealed a 6.19% surge in weekly active addresses at the time of writing. However, network activity was not quite there yet, indicated by a 1.1% drop in weekly transactions.
This was also evident in network fees, which also slid over the weekend.
Source: DeFiLlama
These findings are essential because they highlight the state of organic demand in the BSC. Strong network activity triggers more demand for BNB, which in turn drives its price.
This can be observed during instances of more market confidence, especially in altcoins.
As far as volume is concerned, on-chain data indicates a significant decline over the last five months. The same applies for the last two weeks, as the market embraced more uncertainty.
Source: DeFiLlama
Read Binance Coin’s [BNB] Price Prediction 2024–2025
The return of altseason would likely trigger a resurgence of on-chain volume, closer to levels last seen in March.
While that remains to be seen, BNB would likely benefit from a robust demand uptick in such a scenario. Meanwhile, further downside from its current level may trigger a wave of panic selling.
