Key Insights
- •BNB Tops LunarCrush’s AltRank Score as the Market Embraces Recovery.
- •BNB Price Up Over 12% in the Last 7 Days, But Will Demand Dynamics Hold?
- •CZ Drums Up Support for VanEck’s Upcoming BNB ETF.
Is BNB crypto on the lineup of cryptocurrencies slated for a strong comeback in price as the bears retreat? The Binance Smart Chain (BSC) native coin was among the top performers earlier this year. Investors are now curious as to whether it will still find favor among investors, especially now that it is significantly discounted. It turns out that the BNB crypto was still able to command noteworthy attention despite the recent bearish headwinds. The cryptocurrency just passed the mid-week marker as the top cryptocurrency on LunarCrush’s Alt Rank chart.
BNB crypto’s top ranking meant that it was the highest-scoring altcoin, based on social metrics and price performance relative to Bitcoin. In other words, a lot of crypto investors have their sights set on the Binance-native coin, and it has been gaining a lot of attention on social circles. But what does this really mean for BNB price action?
BNB Price Action Could be Headed for a Robust Recovery, but with Caveat
The top Alt Rank position suggests that BNB may be at the forefront of coins likely to secure healthy demand as the market recovers. This could result in a robust recovery, as investors flock back to take advantage of coins with the highest potential upside. BNB price action in the last 7 days already signaled that the cryptocurrency was already benefiting from its visibility. The cryptocurrency exchanged hands at $894.9 at press time, which was equivalent to over 12% upside from its lowest price point last week.
BNB’s RSI and MFI indicators confirmed that there was significant accumulation at recent lows. However, these indicators did not give a clear picture of the state of demand across the market. Moreover, recent bearish retreats over the last few weeks lend themselves to capitulation. Key demand metrics hinted that a similar outcome could play out if BNB demand remains weak. Whale demand remained weak in the last few days, and similar outcomes were observed across the broader spot market. However, it was worth noting that the demand dynamics were still heavily influenced by macro factors. Nevertheless, the ranking indicated that the BNB crypto may be on track to make a strong comeback once market conditions allow. That could be days or weeks away from happening, bearing in mind the upcoming changes anticipated in December.
Will BNB ETF Hype Shift the Tide in Favor of Demand?
Part of the aforementioned social activity around BNB crypto may have been BNB ETF hype. Recent SEC filings revealed that VanEck plans to roll out a BNB spot ETF, which will be listed on the NASDAQ. Former Binance CEO recently mentioned the VanEck BNB ETFs ticker VBNB in a one-word tweet. Analysts saw this as a confirmation that the ETF may be launched soon, perhaps before the end of the year. BNB ETF launches may boost the cryptocurrency’s recovery, but that may depend on multiple factors. For example, demand has to be robust, and macro factors should be aligned with a recovery narrative. Solana ETFs maintained healthy positive demand for weeks after approvals, but they did not have much of an impact on price action. This was because the macro conditions manned the economic helm, steering prices downward. BNB ETFs may therefore have a similar outcome, but a different macro background may yield a different outcome. All these are key factors to consider on whether BNB will reclaim the $1,000 price level.