Home Altcoins News BNB DEX Volumes Surge to 3-Year High – $800 Within Reach

BNB DEX Volumes Surge to 3-Year High – $800 Within Reach

BNB Coin

Binance Coin (BNB) is experiencing a notable surge in momentum, fueled by a significant rise in decentralized exchange (DEX) volumes on the BNB Chain. This surge in activity has fueled optimism, with many speculating that BNB may be on the verge of a breakout that could push its price toward the $800 mark.

Record-Breaking DEX Volumes Signal Growing Demand

Recent data from DeFiLlama shows that weekly DEX volumes on the BNB Chain have hit a remarkable $17.74 billion. This is the highest level seen since December 2021, marking a strong recovery and heightened market interest. The surge has been driven by two key protocols on the chain: PancakeSwap and THENA. PancakeSwap, in particular, has witnessed a massive 298% increase in its weekly volume, while THENA has grown by 111%. This uptick in DeFi activity is expected to have a positive impact on BNB’s price, as greater usage of the network increases demand for its native token.

As of now, BNB is trading at approximately $697, reflecting a modest 2% gain in the last 24 hours. This price increase mirrors a broader market recovery, with BNB showing resilience despite challenges in the broader cryptocurrency ecosystem. Given the ongoing rise in DeFi activity and the potential for further bullish movement, the future looks promising for BNB.

Bullish Technical Patterns Point to $800

On the daily chart, BNB is forming an ascending triangle pattern, a classic technical setup that signals bullish continuation. The upper trendline of this pattern sits at $722, making this level a key resistance point. If BNB manages to break above this resistance, it could lead to a sustained uptrend, with a potential target price of $823, marked by the 1.618 Fibonacci extension level.

In addition to the technical pattern, the Relative Strength Index (RSI) has crossed into positive territory, suggesting that buying pressure is increasing. When the RSI stays above the 50 mark, it typically indicates growing bullish sentiment, supporting the possibility of a breakout to higher levels. If the bullish momentum continues, BNB could surpass its recent all-time high of $793 and challenge the $800 mark.

However, traders should remain cautious of the red Awesome Oscillator (AO) bars, which are signaling some bearish pressure. A failure to break the $722 resistance or a drop below the lower trendline of the ascending triangle could suggest a reversal and lead to a price pullback.

Short Squeeze Potential Could Drive Prices Higher

A noteworthy factor that could further boost BNB’s price is the presence of a large number of liquidations above the current market price. According to Coinglass’s liquidation heatmap, if BNB climbs past the $706 mark, it could trigger a short squeeze. This would force short sellers to cover their positions by buying back BNB, adding buying pressure and potentially driving the price higher.

On the flip side, a drop below $678 could lead to long liquidations, which might push the price lower. As such, traders need to monitor key support levels carefully to gauge the overall market sentiment and avoid getting caught in a potential bearish move.

Conclusion: Is $800 Within Reach?

The surge in DEX volumes and BNB’s bullish technical setup on the daily chart suggest that the token could be gearing up for a breakout. If BNB manages to breach its resistance levels and maintain its upward momentum, a move toward $800 and beyond is certainly possible. However, traders should remain vigilant and watch for any signs of weakness, as a breach of critical support levels could lead to a reversal.

The coming days will be crucial for determining whether BNB can continue its ascent or if market dynamics will shift, leading to a potential pullback. With the DeFi sector booming and BNB showing strong technical indicators, the token may be poised for an exciting few weeks ahead.

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James

James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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