After 2022’s long torrid wave in the crypto market, almost all digital assets have started their rally back to the path of recovery. Among them, the Binance coin is one of the top-performing assets that has been in the limelight lately. BNB was specifically designed for use in the Binance ecosystem, and with time, the coin gained multiple utilities.
The recent market crash has adversely affected the price and value of BNB. But regardless of the lows, it is one of the most resilient altcoins as the price has again started to bounce back in 2023. With the price pumping up over 17% in a week, investors are mulling to know if this is a good time to buy BNB.
Reasons For BNB’s Quick Rebounce?
The value of BNB started dropping in May 2022, and the coin traded in a red zone for almost all part of the year since then. Giving investors hope, it started recovering slightly at the beginning of this year. The price started going up from $245 and gradually hovered above $320 in February. But the bullish rally didn’t last any longer as it tumbled down and traded around the mid-$260s due to the general market downturn and looming fears of US bank failures.
However, BNB has shown a stunning recovery and is over 25% up from its recent lows, trading at $340.05 as of writing. There are several reasons for the sudden spike in Binance coin’s price. A major catalyst is undoubtedly the significant improvement in the broader market scenario.
There is rising optimism from crypto enthusiasts that the response from US authorities to recent bank troubles would prevent a major crisis. Additionally, there’s hope that the Fed won’t do much tightening amidst the current scenario that exposed the fragility of the banking system. The rising narratives around crypto being a safe haven against a collapse in the traditional financial system are also adding fuel to the crypto recovery journey.
Apart from general market improvement, a key catalyst for its price rise is the announcement that Uniswap, the largest decentralized exchange, has deployed on the BNB chain. This marks a significant addition to the chain's utility substantially, as it would bring more-on-chain activities. Therefore, with consistent performance over the years, BNB has positioned itself as a reliable investment option for investors in 2023 and beyond.
Price Prediction – Where Next For BNB?
A key indicator that would decide the path of BNB in the coming months would be a technical analysis of the coin, which seems extremely bullish. After successfully recovering from a recent dip to the south of its 200 DMA at $287, it is trading greatly to the north of its major moving averages. Also, this week's increase in the crypto's price has seen it break significantly to the north of a downtrend that had been restraining the price action since early February. Clearly, a test of its February’s annual highs of $330 is a near-certainty, given the pace of BNB’s current rally.
Investors are curious to know what is next for BNB once it hits new annual highs. Experts are optimistic that the break from the current annual high would increase the chance of the altcoin reaching its November high of nearly $400.
A target of nearly $400 means over 20% gain from its current levels. Although this is a significant rise, given the current scenario and its stunning 25% recovery from last week’s lows within a day, this target seems achievable for BNB. However, a 20% surge would be a bit delayed as its 14-day Relative Strength Index (RSI) is on the verge of hitting overbought territory. Since the entire crypto market is slowly stabilizing, BNB might soon enter a period of consolidation in the low to mid-$300s.
On the other hand, investors and traders are consistently monitoring macro events like upcoming Fed meetings for positive outcomes and the ongoing bank crisis.
Is It Time To Buy BNB?
BNB is the utility coin of the biggest crypto exchange in the world, which largely contributes to its popularity. Binance is an ever-growing exchange, and its functionality would certainly push its price. This crypto stands out in the market as it can be used in several ICO investments using the Binance Launchpad program. This helps in creating a seamless framework where other virtual tokens can be traded and also allows for extra credit and debit cards to be supported on the Binance cryptocurrency exchange platform, the digital currency, and the mobile app.
Additionally, the lynchpin of the Binance ecosystem employs a unique token burn mechanism. To promote deflation and help sustain BNB’s market value, the team executes coin burns every quarter, significantly reducing its supply. Along with increasing demand and price rise, this also offers great transparency and predictability to the BNB ecosystem.
BNB has made its name for delivering high returns on investment over the past few years, making it one of the most profitable coins to buy now. The continuous expansion of the Binance ecosystem and updates to the network would push the price of BNB to new all-time highs.
Since its inception, BNB has enjoyed a consistent rally, marking its reputation as one of the most successful cryptocurrencies in the market. The recent pump-up of over 17% within a week is proof that the crypto has strong potential for recovery and growth. Given the current scenario, BNB is a good buy now as its price is believed to maintain a firm upswing in the coming days and head toward the desired target soon.