For BNB, this is an important week, as it is the cryptocurrency that provides power for the Coin Security smart chain. Due to concerns about the collapse of US banks, asset classes were generally safe haven, and BNB experienced an astonishing rebound after falling to a mid-term two month low of $260 late last week
For BNB, this is an important week, as it is the cryptocurrency that provides power for the Coin Security smart chain. Due to concerns about the collapse of US banks, asset classes were generally safe haven, and BNB experienced an astonishing rebound after falling to a mid-term two month low of $260 late last week.
The current level of BNB/USD is approximately 330 US dollars, up nearly 25% from last week's low. Part of the rebound can be explained by the broader recovery of the cryptocurrency market: 1) Optimism believes that the US authorities' response to banking issues will be sufficient to prevent a crisis, 2) the Federal Reserve will not take more tightening measures in the face of a fragile banking system, and 3) there is an increasing belief that cryptocurrencies are a safe haven against the troubles of the traditional financial system.
However, although other cryptocurrency markets have been consolidating in the past few days, according to CoinMarketCap data, BNB has continued to rise by 8% in the past 24 hours. This may be because there are reports that Uniswap, the largest decentralized exchange, has been deployed on the BNB chain, greatly increasing its utility. Analysts expect this to lead to more on chain activities.
Price Forecast - What is the Next Step for BNB?
From a technical perspective, the situation at BNB looks very good. The cryptocurrency is currently trading heavily in the north of all its major moving averages, rebounding strongly from its recent drop to $287 south of the 200 day moving average. More importantly, this week's surge in encryption has seen it significantly break through the northern end of the downward trend that has been limiting price movements since early February.
At this point, testing the February annual high of $330 seems almost certain. As expected, investors will now ask BNB what is the next step after reaching an annual high. Technicians may conclude that breaking through the current annual high opens the door to a possible rebound to near the November high of $400.
This will mark a further 20% increase from the current level, which is significant, but feasible in the context of a 25% rebound from last week's low in just about a day recently. However, as BNB's 14 day Relative strength index (RSI) is about to touch the overbought area, it may take some time for it to rise 20% further.
As the broader cryptocurrency market stabilizes (Bitcoin has been hovering at levels close to/slightly below $25000 for several days), BNB may soon enter a consolidation period of $300 to medium to low levels. Investors will pay attention to upcoming macro events, such as next week's Federal Reserve meeting, to understand whether the US central bank's interest rate guidance has shifted towards moderation as currently hoped by the market.
Traders will also focus on the ongoing banking crisis, which seems to have spread to Europe (Credit Suisse is in trouble). Further nervousness may trigger a short-term decline in cryptocurrencies and other risky assets, but the argument surrounding cryptocurrencies as a safe haven for traditional financial system crises may ultimately prevail.
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