Binance Coin Reaches New All-Time High Above $770, Signaling Altseason
Binance Coin (#BNB) reached a new all-time high (ATH) after consolidating below the 2021 peak for eight months. The altcoin, with a fully diluted valuation of approximately $111 billion and a daily trading volume exceeding $6 billion, increased by over 17% to trade around $765 on December 4 during the mid-London session.
The native coin of the Binance ecosystem indicates the start of a new parabolic rally. The weekly Relative Strength Index (RSI) is nearing a rally above the 70% level for the first time this year.
This surge marks the beginning of an anticipated altseason, with further gains expected. Bitcoin (#BTC) remains below $100K, while the TOTAL3 market cap, excluding Ethereum (#ETH), surpassed $1.1 trillion earlier today.
Major Factors Fueling Bullish Sentiment on BNB Price
The recent increase in BNB's price is attributed to positive sentiments over the past few months, particularly following the release of former Binance CEO Changpeng Zhao (CZ) from US prison. On-chain data indicates that Binance has seen the highest stablecoin inflows recently, driven by whale investors looking to capitalize on potential altseason. Additionally, Binance boasts a community of over 240 million registered users.
The BSC network has experienced significant growth in its Web3 ecosystem, with daily active addresses rising to over 1.1 million. The total value locked (TVL) in the network has increased to more than $5.8 billion, alongside a stablecoins market cap of about $6.14 billion.
Furthermore, total BNB futures Open Interest (OI) has surged by over 39% in the last 24 hours, reaching about $1.5 billion. This suggests that BNB's price has benefited from speculative trading driven by whale investors.
Midterm Expectations
From a technical analysis perspective, BNB's price must consistently remain above the former resistance level of around $690 on a weekly timeframe to confirm a successful bullish breakout. Analyst Ali Martinez predicts that BNB's price could target over $1000, with a midterm goal of approximately $1,630.
We entered $BNB earlier, but now at $740 and in price discovery, it couldn’t look better! https://t.co/Em0QuV8fIh
— Ali (@ali_charts) December 3, 2024
If BNB's price falls below $609 again, the recent bullish breakout may be deemed a false signal. However, the current momentum remains with the bulls, and a drop below $700 could trigger increased buying activity from FOMO traders.