The Binance Token is 10% From a New All-Time High—Should You Buy?
Today, the BNB price fell 1.5% to $610.69, remaining 10% below its all-time high of $686. BNB achieved this record high in May 2021, but with Ethereum ETF prospects boosting the market, it might set a new high in the coming days.
The altcoin is up 5% in a week and 95% in a year, and Binance is the largest crypto-exchange by volume, so demand is certain to continue. ETH ETF approvals today might spark another rise for BNB, and rate cuts could push it much higher by 2024.
Today's decrease may disappoint traders who anticipated the gains of the last two days to continue, but it puts them in a strong position to purchase BNB at a discount before it may recover today and over the weekend. A relative strength indicator (RSI) below 50 this morning suggests the market is overselling BNB, indicating a potentially undervalued price.
Technical Indicators
Chart for BNB (from TradingView): BNB's 30-day moving average (orange) is falling toward the 200-day (blue), indicating weakening momentum. However, since it recently crossed above the longer-term average, it may rise again soon, suggesting a medium-term growth phase.
Trading Volume: BNB's 24-hour trading volume, at $1 billion, is double from two days before, which is positive. This means that traders will likely rush in to purchase the token's dip, potentially minimizing further declines.
Market Outlook
The market awaits the SEC's judgment on multiple spot-based Ethereum ETF applications. Many anticipate the SEC to approve the ETFs filed by VanEck and ARK Investments/21Shares. If so, BNB and other major altcoins will likely rise, including ETH. As the largest cryptocurrency exchange, Binance will profit from the rising demand.
Regulatory Considerations
While Binance faces regulatory obstacles in Nigeria and abroad, its market position remains solid.$BNB
