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Binance Coin Price Prediction as BNB Surges 17% in One Week – Time to Buy?


Binance Coin Price Prediction as BNB Surges 17% in One Week – Time to Buy?

BNB coin. Source: Adobe

It’s been a big week for BNB, the cryptocurrency that powers the Binance Smart Chain. After dropping to two-month lows late last week mid-$260 amid widespread risk across all asset classes and concerns over US bank failures, BNB has seen a stunning rebound .

At current levels around $330, BNB/USD is changing hands nearly 25% from last week’s lows. Part of the rally can be explained by the broader crypto market rally on a mix of 1) optimism that the US authorities’ response to banking problems will be sufficient to prevent a crisis, 2) that, in the face of a banking system fragile, the Fed won’t do much more tightening and 3) a growing narrative that crypto is a safe haven from problems in the traditional financial system.

But while the rest of the crypto market has consolidated over the past few days, BNB has continued to pump and is up 8% in the past 24 hours according to CoinMarketCap. This is likely due to the news that Uniswap, the largest decentralized exchange, has rolled out to the BNB chain, greatly adding to the usefulness of the chains. Analysts expect this to bring much more on-chain activity.

Price Prediction – What’s Next for BNB?

Things are looking very good for BNB from a technical perspective. The cryptocurrency is now trading noticeably north of all its major moving averages, having rallied sharply from a recent decline south of its 200DMA at $287. Additionally, the cryptocurrency’s surge this week saw it break significantly north of a downtrend that has been capping price action since early February.

A test of the February yearly highs in the $330s seems like a near certainty at this point. Unsurprisingly, investors are now wondering what will be next for BNB once it hits new yearly highs. Technicians will likely conclude that a break above the current yearly highs opens the door for a possible return to November highs near $400.

This would mark an additional 20% gain from current levels, which is a lot, but doable in the context of the recent 25% rally from last week’s lows that only took about a day. But with BNB’s 14-day Relative Strength Index (RSI) poised to hit overbought territory, a further 20% increase could take some time.

With the broader cryptocurrency market stabilizing (Bitcoin has been stuck near/just below $25,000 for a few days now), BNB may soon enter a period of consolidation in the $300s. Investors will be watching upcoming macro events, like next week’s Fed meeting, to see if the US central bank’s interest rate forecast changes as dovishly as the market is currently expecting.

Traders will also be watching the ongoing banking crisis, which appears to have spread to Europe (Credit Suisse is struggling). Emerging worries could trigger a short-term decline in crypto alongside other risky assets, but narratives that crypto is a safe haven from a crisis in the traditional financial system could ultimately prevail.

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.