Binance Coin (BNB) has recently seen a sharp 30% rebound, lifting its price after hitting a four-month low. However, the question on many traders’ minds is whether this recent surge is the start of a new bull cycle or just a temporary rally before another drop. After peaking at a market cap of $100 billion, BNB dropped by 13% in less than a month, losing its spot in the top 5 market cap rankings to Solana (SOL). But now, with a 10% gain from its lowest point, BNB has reignited interest, leaving many wondering whether fresh capital is flowing into the altcoin.

From a Low to a Quick Rebound

A week ago, BNB dropped to $500, marking its sharpest decline in months. This fall wiped out its post-election surge to $793, leaving investors uncertain about its future direction. However, in a surprising reversal, the altcoin has rebounded by 30% within just one week. At the time of writing, its market cap has surged back above $90 billion after briefly dipping below $75 billion, leaving BNB on track to reclaim its place among the top five cryptocurrencies, potentially knocking Solana out of that spot.

With the Relative Strength Index (RSI) indicating potential for further upside and a bullish MACD crossover pointing toward a breakout, the signs for BNB seem positive. This movement has prompted optimism that it could be the beginning of a larger rally, prompting traders to weigh their options—whether to buy the dip or cash out at this stage.

Are Buyers Jumping In Too Soon?

While the recent price movement is encouraging, some market participants are questioning whether the rally is overheating. Trading volume has spiked by 76% in just one session, suggesting that traders are becoming more active, but the question remains: is this a sustainable surge, or is it too much, too soon?

At the current pace, BNB could soon hit the $650 resistance level, bringing its next target within sight—$700. However, if it fails to hold the $620 support level, there could be a pullback toward $560, a key support zone. Traders are closely watching these levels to gauge whether the rally will continue or if a retracement is imminent.

Looking Ahead: Which Scenario Is More Likely?

As BNB’s momentum builds, the next key test will be its ability to break above the $650 resistance level. If successful, it could potentially reach $700. On the other hand, if the rally stalls due to overheating, BNB may experience a dip before making a more significant push upward. The recent volume surge and a strong BNB/BTC trading pair suggest that capital is rotating away from Bitcoin (BTC) into Binance Coin, a bullish sign for BNB’s prospects.

Given this market setup, the $650 target for BNB does not seem far off, but it is crucial to keep an eye on momentum. If it runs too hot, BNB could face a cooling-off period before making another push higher.

The Solana Factor

Meanwhile, Solana (SOL) remains resilient, holding strong above $200. With the SOL/BTC pair gaining traction, the question for traders becomes whether BNB or SOL will perform better in the coming months. SOL’s strong performance signals ongoing accumulation, and this could be a critical factor to consider when deciding which coin is the better investment moving forward.

In conclusion, BNB’s recent rebound has been impressive, but whether it will continue to rise or face a correction depends on market conditions and key levels of support and resistance. Traders should watch for confirmation of sustained momentum or signs of an overheating rally before making their next move.