This missing component could push Binance Coin (BNB) to a new ATH

Binance, the world’s largest cryptocurrency exchange by trading volume, appears to be strong, and this becomes more apparent when the Binance Smart Chain (BSC) cumulative trading volume exceeds 1.5 billion.

With the network hitting the 1.5 billion milestone in just 14 months, the price of Binance Coin (BNB) also appears to have skyrocketed.

BNB is up 2.56% in 24 hours, 12.59% in 7 days and is currently trading at $ 554.67 at press time. Apparently, BNB’s price increase came in part from the growth of the network as retail investors flocked to BSC, the daily trading token and BSC’s active address was with ATH.

With the BNB hitting new multi-month highs this time around, the chances of it breaking into the top 3 by market capitalization seem feasible. However, there are a couple of things that seem to be missing from this demonstration.

Retailers missed the promotion

Retail investors appear to be flocking to BSC but have missed the BNB rally action (MIA). In fact, trading volume did not hit the April to May area and maintained a fairly uptrend.

Source: trade view

The BNB’s RSI (Relative Strength Index) on the daily chart suggests that overbought conditions can often lead to a short-term correction. While the RSI still has room to rise on the weekly chart, a boost from retail investors seems like the right thing for the NBB. However, there are signs that BNB will grow spectacularly in the coming days.

Signs of protest

First, projects from Binance Launchpool and Launchpad are likely to develop strongly in the coming months. Example: Coin98, the largest cross-chain wallet. It has a large user base in Southeast Asia and has traded nearly $ 4 billion since its inception on Binance Launchpad. Other reports have highlighted that DeFi activity on BSC has increased 487% since 2020, again underscoring BSC’s growth and fueling BNB.

It is worth mentioning here that the daily active addresses (DAAs) of the BNB have also kept themselves at a relatively high level. DAA stayed at 87,800 on November 1, after reaching ATH on October 29th.

Source: Sanbase

Also, the 7-day MVRV and the 30-day MVRV have not yet reached the overheating range. Although the downturn in the two indices could result in a short-term correction for the NBB. In a shorter period of time, it bounced back from recent consolidation which resulted in a 2% depreciation in the early hours of November.

With explosive growth like the GameFi sector in BSC attracting interest as users from Southeast Asia continue to fuel the crypto gaming market, it doesn’t seem like ATH is too far away for BNB. All it takes, however, is a boost from the retail side. After this momentum, a bullish breakout above USD 550 will confirm the path to a new ATH for the NBB.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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