Is BNB Price Rally Here to Stay or Not?

Bears have been in the driving seat of the crypto market for the past couple of months. Binance Coin (BNB) has been making strides in the ecosystem. Will the BNB price rally stay or not?

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Jay Crypto

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Last updated Sep 30, 2022 at 08:32 PM

Posted Oct 1, 2022 at 04:00 PM

BNB Price Rally

The overall ecosystem of BNB is showing encouraging growth with price gains over the last couple of days. We will explore whether the BNB price rally will stay or go away with the trembling market. But, first, we will discuss the price performance of the BNB. Let’s get going!

How is BNB Performing?

CoinMarketCap data shows that BNB is trading above $280 with daily gains of more than 1%. The asset has made a stand against the trembling market with price gains exceeding 4% in the last seven days. The asset is strengthening its 5th market ranking with a 24 hours trading volume of more than $820 million. In the last trading day, the asset added more than 1% to its market.  Historical data reveals that the asset’s price has tanked almost 60% from its all-time high of $690.9 a year ago. The BNB price rally came when the king coin, BTC, was trading below its psychological support of $20k. 

BNB Price Rally 2

Weekly Price chart of BNB from CoinMarketCap

The past several months have been difficult for the cryptocurrency industry as most coins have been losing a lot of money. However, Binance Coin's [BNB] chart has turned green as a result of its encouraging recent increases.

Let’s explore the possible reasons for the BNB price rally over the last week. 

Possible Reasons for Price Rally

Along with a number of other changes that occurred in the BNB ecosystem, current optimistic movements can be seen as a driver. A renowned cross-chain bridge solution, Multichain, recently started cooperation with Shiba Floki Inu, a Dogecoin ancestor. Holders of FLOKI will be able to easily transfer their coins from the Ethereum blockchain to the BNB network.

BNB Price Rally 3

Twitter

This move delighted FLOKI owners as well as BNB followers because the price of the latter cryptocurrency increased by almost 6% over the previous day. Will BNB's price continue to rise in the days to come even though it has reflected these changes at the time of press?

BNB Seeing a Floki Effect

It's worth noting that while BNB's price increased, so did its social engagement. This was demonstrated by the fact that on September 28, BNB ranked among the top tokens in terms of social activity on the BNB chain.

Additionally, among the top 10 cryptos in terms of market capitalization, BNB was one of the top gainers during the past seven days as a result of the current uptrend. The majority of the measures' readings, according to a glance at BNB's on-chain side, seemed to support the current spike.

BNB Price Rally 4

Twitter

For example, last week saw an increase in BNB's 30-day Market Value to Realized Value (MVRV) Ratio, which may have aided the currency in its most recent rally. On September 28, BNB's daily on-chain transactions in profit also increased dramatically, which can be viewed as somewhat positive news for investors. 

Additionally, as of September 28, BNB's total NFT transaction volume increased significantly in USD.

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Santiment

Let’s explore the technical analysis with indicators to predict whether the BNB price rally will stay or not. 

Is BNB Bullish Now?

Surprisingly, BNB's daily chart presented a muddled picture as certain market indicators suggested a potential continuation of an upward trend while others suggested a future downward trend. For instance, the MACD showed a small bullish crossover, which leaves room for speculation over a potential brief rise.

BNB Price Rally 6

TradingView

The Relative Strength Index (RSI) for BNB was hovering slightly above the 50-point level. There appeared to be impending selling pressure with a modest positive edge. Additionally, there was a negative indication because the 20-day Exponential Moving Average (EMA) was lower than the 55-day EMA. BNB's Chaikin Money Flow (CMF) decreased as well, reducing the likelihood of a sustained upswing in the near future.

Conclusion

The current BNB price rally was a brave move, and if BNB stays on its course, it can easily reach $300 in the coming week. Any major happenings on the macroeconomic level will nullify this analysis. DYOR!!

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