BNB, the native cryptocurrency of Binance, is right on a bullish track after surging past $800 for the first time in history. The token briefly rallied to $804.70 marking a new all-time high (ATH) before sliding. But still, the new peak signals growth for the Binance coin.
As per recent analysis, BNB’s rally to a new ATH can be attributed to various factors. The rally has been backed by massive token burns, strategic updates and surging market interest. Let’s break them down below!
BNB’s Push to New All-Time High at $804.70
Dubbed the Binance coin, BNB is piquing the interest of investors on July 23 following a rally past $800 to a new peak of $804.70. BNB’s surge came after an over 16% surge over the last 7 days and over 30% over the last one month. In particular, the coin has surged from $619.79 over the last 30 days. However, at the moment the price has now retraced to $798, marking only a 5.85% surge on the day per data on CoinMarketCap.
The token’s trading volume is also surging indicating strong market activity. Over the last 24 hours, the coin has recorded $3.28 billion in trading volume. This marks a 10.86% surge over this period.
Additionally, BNB has now regained the fifth spot in market capitalization after its market cap surged to $111.15 billion. The coin had dropped to sixth spot yesterday as Solana surpassed its market cap.
What’s Driving BNB’s Rally?
Binance coin’s rally can be attributed to various factors. One of the key factors fueling the current rally is the recent network upgrade to BEP-593 as announced on July 21. This on-chain upgrade will improve Binance Smart Chain’s node syncing and validator coordination thus laying down the groundwork for faster block times and smoother consensus. In turn, the BEP-593 proposal makes the BNB Chain smoother for developers, further attracting demand for the token.
Crypto investors are also showing strong conviction for Binance coin. Recent data shows that the Futures Open Interest (OI) of BNB is surging. Today, the OI hit $1.04B, with total futures interest now at $1.25B. This is the 3rd highest level reached by the single day total futures interest since December, as per Coin Edition analysis.
The token’s burn mechanism has also contributed largely to the recent price rally. The monthly token burns have removed a total of 1.9 million BNB (worth $1.5B) from circulation this year. As shared by BNB Chain on X, the recent quarterly burn removed a total of 1.59 million BNB worth around $1 billion from circulation. This pushed the total supply at the moment down to 139.28 million BNB thus triggering a surge in price due to scarcity.
RSI Signals a Slow Down in Momentum
Despite BNB’s rally being backed by strong metrics and network upgrade, the price remains at risk of falling. The Relative Strength Index (RSI) of this token has surged into the overbought zone. BNB’s RSI has a reading of 87.28 at the moment per the daily chart on TradingView.
With the RSI climbing into the overbought zone, a retrace is imminent. Moving forward, investors and traders must brace for a price drop as the RSI rises. With that in mind, the recent surge in BNB may thus be short-lived.
