The cryptocurrency market received a boost on April 21 as the price of Binance's native currency, BNB, rose by 3%. This increase suggests that optimistic investors are starting to invalidate the previously gloomy outlook for cryptocurrencies. However, it remains to be seen whether the BNB bull rally will have enough momentum to overcome the bearish barrier at $340.
Binance is the developer and supporter of the BNB chain, a distributed blockchain network that primarily allows developers to create and host decentralized applications. The recent surge in trade activity across the BNB chain network is one of several on-chain indicators pointing to a possible shift in sentiment among investors.
Binance's confirmation of a $1 billion deal to acquire the assets of the collapsed crypto lender Voyager was another factor contributing to the increased trading activity and positive market reaction. As the market continues to evolve, it will be interesting to see how Binance and other players in the cryptocurrency space adapt and respond to new developments.
BNB Trading Activity Hits a Three-Month High
The BNB network has recorded a significant milestone, as its daily transaction volume has exceeded $200 million for the first time since early February. The Transaction Volume metric measures the total dollar value of daily transactions on a blockchain network.
This increase in trade volume suggests a growing interest in BNB among investors, which could lead to higher prices for the cryptocurrency. Generally, as the trade volume increases, it is an indication of heightened activity and growing demand for a particular asset, such as BNB. This increased interest may translate to higher valuations in the market, as investors may be willing to pay higher prices for BNB tokens.
Recent historical statistics suggest that the last time BNB's daily transaction volume exceeded $200 million was on January 31. Following that, the price of BNB increased by 7% before experiencing a retreat. If this pattern holds, it may indicate that BNB holders can look forward to potential gains in the coming days.
Altcoin Market Plagued by Pervasive Negative Sentiment
In the past week, the global cryptocurrency market cap has seen a 7% decline, which has raised concerns among investors in the altcoin market. BNB, a cryptocurrency supported by the Binance exchange, has not been immune to this trend. Recent data from the blockchain indicates that BNB's Weighted Sentiment has remained close to zero over the last seven days.
Weighted Sentiment is a metric that measures the ratio of positive social mentions to negative ones to track stakeholders' perceptions of an asset's price prospects. A near-zero reading for BNB's Weighted Sentiment may suggest that investors currently have little optimism or pessimism about the cryptocurrency's future price movements.
When Weighted Sentiment trends are negative for an extended period of time, it often suggests that the market is oversold, which could indicate that BNB is on the verge of a positive reversal.
In conclusion, while the negative mood and decline in global cryptocurrency market cap may be concerning for some investors, it could also present a unique buying opportunity for astute investors who believe in the long-term potential of cryptocurrencies like BNB. As always, it's important to conduct thorough research and exercise caution when making investment decisions in the volatile cryptocurrency market.
BNB Price Prediction
Last week, BNB holders were able to maintain the $315 support level, thanks to bullish investors. According to Santiment's Market-Value to Realized-Value (MVRV) data, these investors may now be able to push for even higher gains.
Currently, most XRP investors who bought in the last 30 days have made a 10% profit. Based on the chart below, they may wait for another 5% increase before selling if the BNB price rises above $340. However, if BNB manages to break through that resistance level, the bulls could push the price towards the $365 area before taking profits.
On the other hand, if the BNB price drops below the $315 support level, the bears could gain the upper hand, and the bullish stance may be invalidated. However, some investors may continue to offer support at that level to retain profits above 3%.
If the $315 support fails to hold, XRP could decline further towards the 2% loss zone at $300. In this scenario, holders may opt to sell and cut their losses, which could potentially trigger a rebound.
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Source: beincrypto
image Source: binance
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Disclaimer
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
