Binance Coin [BNB] surges: 2 key reasons why

BNB hits a new all-time high of $794.3, driven by rising trading volume and on-chain activity. 

BNB was trading at around  $715.9 at press time. Rising on-chain activity and social sentiment reinforced BNB’s bullish outlook.

Binance Coin [BNB] continues its impressive growth, recently reaching an all-time high of $794.

The surge, driven by increased trading volume and heightened on-chain activity, reflects growing confidence in the ecosystem.

With strong technical indicators and bullish social sentiment, BNB shows potential for further upward momentum despite minor consolidation risks.

BNB: Price and trading activity on the rise

BNB, the native token of Binance, has seen remarkable growth throughout 2024, culminating in a series of upward trends toward the end of the year.

After breaking its all-time high just four days ago, the price hovered around $715.9 at press time. The rally has been accompanied by increased trading volume, signaling heightened investor interest, according to CryptoQuant.

The 30-day moving average for BNB trading volume has been climbing steadily since mid-2023, with recent values approaching historic highs.

This surge reflects sustained enthusiasm and growing confidence in Binance and its ecosystem.

Technical indicators like the RSI at 60.63 suggest the token is slightly overbought but with room for further growth. The MACD remains bullish, reinforcing optimism among traders.

Source: TradingView

On-chain volume and social sentiment

On-chain data reveals a sharp rise in BNB’s transactional activity. Analysis showed that the volume spiked to over $6 billion when the price spiked to its ATH. 

The volume surge marked a significant increase in activity across the Binance blockchain and coincided with the broader market recovery and the recent price breakout. As of this writing, the volume was around $2.24 billion.

Source: Santiment

Also, AMBCrypto’s analysis of the social sentiment, as measured by Santiment, reflected a growing interest in BNB. Social Volume reached its highest levels for the year, spiking to 465.

Historically, such spikes in social engagement have preceded or coincided with major price movements, reinforcing BNB’s current bullish narrative.

Source: Santiment

What to expect from Binance

The Binance price and volume trends analysis shows that BNB’s current momentum indicates a potential continuation of its bullish trajectory.

The steadily rising 30-day volume moving average and the recent surge in on-chain activity suggest sustained interest from traders and investors alike.

Historically, such trends have been precursors to extended rallies, particularly when accompanied by strong social engagement.

However, BNB’s RSI, hovering near overbought territory at 60.63, signals the possibility of short-term corrections or consolidation phases.

This could allow new investors to enter the market before another potential surge.

The MACD’s bullish crossover supports the likelihood of further price appreciation, provided trading volumes remain consistent.

If the current trading activity and sentiment persist, BNB could aim for new highs soon. Key levels to watch include the $750 resistance, with support around the $680 range.

A break above resistance could solidify BNB’s upward momentum, while holding above support would indicate strong market confidence.

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