Key Insights
- •BNB price extends rally to new ATH as altcoins enjoy healthy demand.
- •Binance coin may face downward pressure as price forms bearish Divergence.
- •Analysts hint at a continuing BNB rally to $1,500 by the year‑end.
BNB price, also known as Binance coin by many, is in the spotlight courtesy of its latest bullish push into new uncharted territory. The Binance smart chain‑native coin extended its September bullish momentum into the first week of November.
The last 24 hours were particularly exciting as BNB price pushed above $1,200 for the first time in history.
Binance Coin price pushed as high as $1,223 on Monday morning, kicking off the week with a new all‑time high milestone.
The cryptocurrency’s impressive rally was backed by an aggressive dominance spike amid the ongoing liquidity rotation in favour of some top altcoins.
In other words, the Binance Coin has one of the altcoins currently benefiting the most from the proliferating altcoin season.
Binance Coin price action recently adopted a parabolic curve, but how much further can it sustain its upside?
Some analysts believe that it has the potential to push above $1,500 before the end of the current bullish cycle.
However, pullbacks are to be expected along the way, and BNB price might be due for one in the coming days.
BNB Price: RSI Divergence Signals a Potential Profit‑Taking Ahead
BNB price pushed into new highs, but its RSI has been forming lower highs. This outcome is often indicative of trend exhaustion and could be a sign that investors might soon start securing profits.
The potential for such an outcome also coincided with dominance‑based observation. The rising BNB dominance also retested a historically significant zone just above 4 % where it pivoted on multiple occasions in the past.
Although a resistance level underpinned the 4 % resistance, a break above the same level was also possible.
Binance Coin dominance previously blew past the same level during the 2021 Bull Run. It also rallied above 6 % at its dominance peak in November 2022.
On‑chain data revealed that a bearish bias might be forming around BNB price action, especially after its recent bullish foray.
According to Coinglass data, BNB had roughly $7.49 million worth of spot outflows in the last 24 hours on Binance. OKX had about $1.23 million in spot inflows during the same period.
Derivatives data revealed that whales executed over $558 million worth of net put positions during the last 24 hours across OKX and Binance futures.
BNB Chain Performance Recap
The recent rally in BNB price also reflected healthy network activity over the last few weeks. For reference, its TVL bounced from below $6 billion in June but has since surged past the $8.8 billion mark.
However, the TVL figure was still heavily discounted from its historic top of over $20 billion achieved in May 2021.
The network maintained healthy weekly DEX volume above $25 billion between 29 September and 5 October.
The impressive DEX volume was slightly lower compared to the previous week but it still demonstrated strength.
Active addresses last week amounted to 15.69 million, which cooled down by almost 4 million addresses from the previous week.
The cooling address activity could potentially signal declining hype. Speaking of cooling down, the BNB network recorded $117.86 million worth of net inflows between 29 September and 5 October.
This was significantly lower than the $426.17 million worth of net inflows achieved in the previous week.
On the derivatives side, BNB futures open interest surged as high as $2.54 billion on 4 October. This also marked a new ATH, but it highlighted growing interest, which could underscore liquidation risks.
Although some of the above observations highlighted the possibility of a cool‑down in the latest momentum of BNB price, the market’s mood will determine the outcome.
In other words, Binance Coin price could extend the rally, taking out some of the short positions along the way.