Binance Coin (BNB), the native cryptocurrency of the Binance Smart Chain, has recently found itself in a critical price zone that could dictate its near-term future. The digital asset, which has become a key player in the cryptocurrency space, is showing promising signs of a potential rally, but only under certain conditions. Traders and investors alike are watching closely as BNB’s price movements could lead to a substantial increase, with some analysts predicting a 42% jump in the coming weeks.

A Critical Buy Zone and Historic Growth

Over the past 24 hours, BNB has been trading in a key historical support zone. This price zone is not just important because of its technical significance, but because it has led to major price surges in the past. According to AMBCrypto, BNB’s current position is similar to previous times when the asset experienced sharp upward price movements. However, there is a caveat: the last few times BNB has dipped into this zone, it also triggered what’s known as “liquidity sweeps” or “stop hunts”—where stop-loss orders are triggered, forcing weaker hands (or ‘paper hands’) to sell off their positions.

Despite this, BNB’s price action has shown resilience. If the bullish sentiment holds and buying momentum continues, BNB could break through the descending resistance line and climb as much as 42%, potentially reaching prices not seen since December 2024.

Significant Growth in Unique Addresses and Market Activity

BNB adoption has been steadily growing, and recent data supports this trend. In the last 24 hours alone, the number of unique addresses interacting with the BNB Smart Chain surged to 539 million—a new record. Unique addresses refer to new users or wallets that are interacting with BNB for the first time, either by sending or receiving the coin. This is an important metric, as it suggests a growing user base and increasing adoption of BNB.

Along with the rise in unique addresses, transaction volume on the BNB Smart Chain has also seen a notable uptick. In just 24 hours, the chain recorded over 4 million transactions. This heightened activity reflects greater market participation and could contribute to upward price momentum for BNB in the short term.

Is BNB Heading for a Rally? Here’s What Traders Are Watching

BNB’s recent price action is building anticipation, especially as it hovers near a historically significant buy zone. According to chart analysis, BNB is forming a bullish triangle pattern, indicating a potential breakout to the upside. The pattern suggests that if the price holds above this key support level, it could trigger a powerful rally, potentially driving BNB to $793—an impressive 42% increase from its current price.

However, for this to happen, the market must maintain bullish sentiment. Recently, there has been significant buying activity in both the spot and derivatives markets, which supports the idea that investors are accumulating BNB in anticipation of a future price jump.

Big Investors Are Accumulating BNB at Discounted Prices

A closer look at the market reveals that institutional and larger investors are taking advantage of BNB’s lower price points. In the past 24 hours, approximately $9.83 million worth of BNB was bought up in the spot market. Over the past three days, total accumulation reached $21.04 million. This significant buying activity is a strong indication that large investors believe BNB is undervalued at its current price and are positioning themselves for a potential price surge.

In addition to the spot market, the derivatives market is showing signs of optimism. The Open Interest (OI)-Weighted Funding Rate, a key indicator of market sentiment in futures markets, has remained positive, suggesting that traders are betting on further price increases. A positive funding rate typically indicates that the market is in a bullish phase, with long positions dominating futures contracts.

What’s Next for BNB? A Look Ahead

If BNB continues to attract buying pressure, both from retail and institutional investors, it could see a significant rally in the near future. However, there are a few hurdles that need to be overcome. The first is the potential for “paper hands” to be shaken out of the market in the short term, as stop-loss orders are triggered by brief price dips. This kind of price volatility could create buying opportunities for more patient investors, especially those who believe in BNB’s long-term potential.

If BNB can sustain its momentum, especially with continued growth in user adoption and transaction volume, the cryptocurrency could very well see its price soar to new heights. The target price of $793 represents a level last seen in December 2024, and many market observers believe this could be within reach if the bullish sentiment remains strong.

Conclusion: A Wait-and-See Approach

BNB is currently in a historic buy zone that has the potential to propel its price upward by as much as 42%. However, as with any investment, there are risks involved. Traders should keep a close eye on the market’s movements, particularly the levels of buying activity in both the spot and derivatives markets. If the bullish momentum persists, BNB could make a strong push toward higher prices, potentially rewarding those who position themselves strategically.

For now, the key takeaway is that BNB’s current position presents an opportunity for investors, but only if the market sentiment continues to favor the bulls. Time will tell if BNB can sustain its recent momentum and break through its resistance levels, but all signs point to the potential for significant growth.