Since March, BNB’s price has barely dipped below $500 despite the general downturn in the cryptocurrency market. After major cryptocurrencies took a beating, BNB has shown impressive resilience, supported by strong demand.

Despite this strong performance, the latest BNB price prediction published by CoinCodex still estimates that the currency could rise by 25% to $650 by October 10, 2024. Meanwhile, investor sentiment is bearish, with the Fear and Greed Index also at 33, reflecting uncertainty in the market. This mixed outlook raises questions about BNB’s near-term trajectory. While growth may be possible in the long term, caution is warranted in the short term, especially given the recent volatility of the token and broader market dynamics.

BNB’s sideways trend and strong demand

Since March, BNB has been in a sideways pattern with large ups and downs. However, after each drop, BNB rebounded strongly to over $500, which means that there is strong demand for the coin. For example, on September 6, it fell to a low of $470 but later rebounded to $514 as of press time.

This is also in line with expectations of an altcoin season, as a decline in Bitcoin dominance tends to drive altcoins like BNB higher. Investors appear to believe that BNB may continue to profit from this trend, as it has historically done whenever demand for alternative cryptocurrencies has been stronger.

On-chain data: activity and network demand

The latest on-chain data from Dune Analytics shows both encouraging and worrying trends for BNB. The number of active addresses on Binance Smart Chain increased by 6% month-on-month, indicating that more people are interested in joining the network.

However, the increase in active addresses was not reflected in a corresponding rise in transaction volume, which fell 1.1% over the week, suggesting that the increase in participation has not yet translated into strong network activity.

The decline in network fees also reflects a decrease in activity, which could have an impact on BNB’s price trajectory. To be sure, high network usage has historically led to relatively high demand for BNB, and its prolonged period of low activity could limit the token’s upside potential.

Rally coming up?

Despite recent bearish sentiment and price volatility, Bitcoin could still rise, especially once the altcoin season starts to heat up. Typically, when Bitcoin’s dominance wanes, other assets attract market attention and capital, and altcoins, especially BNB, tend to perform well.

Despite the predictions for a rise in BNB price, which could indicate that BNB will continue to rise, the short-term outlook for the coin remains uncertain.

While the token did achieve a 47% gain over the past month, the 4.62% price swing still shows risk. Bearish sentiment and market panic, along with mixed network activity, mean investors will remain cautious in the near term.

BNB will likely continue to maintain its resilience and may even grow further. This crypto asset is worth watching. But with mixed signals from on-chain data and the market acting cautiously, investors should first consider the risks involved before getting involved in this digital asset.

Although a rebound is certainly possible, the market has not yet ended its volatility, and short-term volatility may still be a problem. We should pay more attention to the current market volatility and wait for interest rate cuts and large-scale money injections to increase liquidity, which will drive BNB to rise further.