BNB Price Surge
• BNB, the cryptocurrency that powers the Binance Smart Chain, has seen a stunning rebound and is currently trading close to 25% up versus last week’s lows.
• The rally can be explained by optimism in the traditional financial system, a growing narrative that crypto is a safe haven and news that Uniswap deployed on the BNB Chain.
• Technicians predict BNB could surge as much as 20% from current levels towards November highs near $400.
Background
Binance Coin (BNB) has been tumbling to two-month lows late last week in the mid-$260s amid generalized risk-off across asset classes amid concerns about US bank failures. However, this week saw a stunning rebound with BNB/USD changing hands close to 25% up versus last week’s lows.
Factors Contributing To BNB’s Rally
Part of the rally can be explained by the crypto market’s broader recovery on a mixture of 1) optimism that the response from US authorities to bank troubles will be sufficient to prevent a crisis, 2) that, in the face of a fragile banking system, the Fed won’t do too much more tightening and 3) a growing narrative that crypto is a safe haven against trouble in the traditional financial system. Additionally, news that Uniswap had been deployed on Binance’s Smart Chain likely attributed to further upward momentum for BNB prices.
Technical Analysis
Things are looking very good for BNB from a technical perspective. The cryptocurrency is now trading substantially to the north of all its major moving averages after recovering strong from a recent dip below its 200DMA at $287 and breaking above trendline resistance going back to early February. Analysts anticipate this could open up even more upside potential for prices with test of February’s annual highs in the $330s being highly likely and possible rally back to November highs near $400 also being considered if current annual highs are broken through convincingly enough.
Conclusion
In conclusion, it appears there may be significant upside potential for investors interested in taking advantage of current price levels for BNB before any further recovery occurs given technical indicators suggest things are looking good for further gains beyond present levels so long as key resistance points are broken through convincingly enough over coming days/weeks ahead.