Binance Coin (BNB) Price Prediction: Will the Bulls Reclaim the $650 Level?

Binance Coin (BNB) was the best performer among the top ten largest cryptocurrencies by market capitalization at press time.

The cryptocurrency market has seen a wave of optimism in recent times, with several top ten large-cap tokens making gains. Among these, Binance Coin (BNB) has emerged as the best performer.

In just 24 hours, BNB has gained nearly 6% to trade at $633, marking its highest price in five months. Following these gains, BNB’s market capitalization has risen by more than $5 billion to touch $91 billion.

However, BNB is yet to reclaim its spot as the third-largest non-stablecoin after recently being flipped by Solana (SOL).

While the bullish sentiment across the broader market has supported BNB’s uptrend, is there more to this rally?

A look at buying activity on BNB’s one-day chart revealed that buying pressure has risen significantly. For instance, on the charts, the volume histogram bars seemed to have flipped green – A sign that buyers are now in control.

The Relative Strength Index (RSI) at 66 also underlined strong bullish momentum. After forming a buy signal after crossing above the Signal Line, the RSI was making higher highs – An indication that the uptrend was gaining strength at press time.

The Chaikin Money Flow also presented a positive value of 0.08, tipping north. Simply put, more capital seems to be flowing into BNB lately.

If buyers continue to support this uptrend, BNB will likely test the next resistance level at $652. Flipping this level could set the stage for further gains.

Conversely, given that the recent gains have coincided with typical weekend volatility, it is likely that the altcoin could drop to test support at $585 if traders rush to book profits.

High volumes are not just being seen in the spot market, but also in the derivatives market. In fact, data from Coinglass revealed that in just 24 hours, BNB’s Open Interest (OI) hiked by 27% to $738M at press time.

BNB’s OI is now at its highest level since June – A sign that derivative traders are increasing their positions on the altcoin. When the Open Interest is rising alongside the price, it means that bullish sentiment is gaining strength.

In fact, most of the new positions appeared to be from long traders. This, because the long/short ratio jumped from 0.90 to 1.11. Funding rates have also been positive over the past week or so.

Data from DeFiLlama revealed a slow, but steady hike in BNB Chain’s DeFi TVL to $4.90 billion at press time. This metric is now at its highest level since late July.

As AMBCrypto reported previously, decentralized finance (DeFi) activity has risen significantly over the past week. Given that BNB Chain is the fourth-largest blockchain by DeFi TVL, a spike in DeFi activity is bound to have a positive impact on the altcoin’s price.

Despite the solid on-chain data, however, Market Prophit revealed that smart money sentiment is yet to flip bullish on BNB. These traders could be waiting for a confirmation of the uptrend’s strength, if the altcoin flips resistance at $652.

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