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- BNB’s price increased by 4.34% in the last 24 hours.
- Active users on the BNB network surged, impacting the price rise.
- BNB may drop to $238 but the recovery beyond $243 is very possible.
Out of the top 10 cryptocurrencies as per market cap, Binance Coin (BNB) gained the most in the last 24 hours. At the time of writing, CoinMarketCap data showed that BNB’s price was $243.63. This value represents a 4.34% hike within the said period.
Also, the likes of Bitcoin (BTC) and Ethereum (ETH) made gains. But their numbers were not close to the Binance-developed coin. While buying momentum was definitely one of the reasons the BNB price surged, on-chain metrics showed that there were other grounds.
Network Activity Also Contributes
One example of the metric driving the uptrend in the active addresses. Active addresses show the daily level of interaction or speculation around a cryptocurrency. At the time of writing, Token Terminal data showed that the metric increased by 3.46% on November 4.
Although the active addresses count decreased at press time, the initial hike alongside the market recovery meant that there was a surge in interest in trading BNB. In retrospect, the combination of the increase in network users would impact the price positively.
BNB Active User (Source: Token Terminal)
According to the BNB/USD 4-hour chart, the market structure had formed a bullish pattern. This is a sign that a lot of accumulation has taken place recently. A close look at the chart revealed that, at $229, millions of addresses bought BNB. This was proven by the surge in volume shown in the chart below.
However, there has also been a rejection at $244. As a result, BNB retested $243.50. Meanwhile, the Bollinger Bands (BB) indicated that BNB was oversold because the upper band hit the price at $243.50.
BNB Is Overbought
Additionally, the oversold condition is not a strong basis to invalidate the bullish run. Of course, there might be further retracement probably to $238. But the increasing presence of buyers is proof that BNB has the prospect of reaching $250 soon.
One other indicator to look out for is the Money Flow Index (MFI). At press time, the MFI was 80.20. Typically, this reading bolstered the RSI notion that BNB was overbought. Here, traders can try to look for reversals.
BNB.USD 4-Hour Chart (Source: TradingView)
Should selling pressure appear, BNB may fall below $240 as mentioned earlier. But considering the current broader market sentiment, it is unlikely for the coin to plunge by 5% in the next 24 hours. At the same time, a possible 10% increase in the BNB price should not be ruled out.
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