Binance Coin (BNB) Demonstrates Resilience Above the $500 Price Level

Binance Smart Chain's Binance Coin [BNB] has demonstrated resilience above the $500 price level since March.

Binance Coin (BNB) price has shown resistance above the $500 price level since March. This was an interesting result because most top coins are now heavily discounted from their March highs.

BNB achieved solid benefit, reaching a new local high even in June. Sure, there were a few cases here and there. Places where the price drops to $500 and then recovers quickly.

This included a bearish trend over the past few weeks, with its price falling as low as $471 on September 6.

BNB changed hands at $509.6 at press time, once again confirming strong demand under $500. Moving out of the zone shows that BNB has been trading sideways with significant up and down swings since March.

Source: DeFiLlama

The price chart above showed clear support and resistance at the last two swing lows and swing highs. Based on these observations, the price appears to be gaining momentum towards another swing high.

If this happens, BNB could be poised for another 15%-plus rise to the next major resistance level. A result that could raise the price to $190.

Evaluating the prospects of the BNB chain

BNB had already risen more than 7% from its last weekly low to press time price. This coincided with a recent surge in altcoin season following a decline in Bitcoin dominance.

However, BNB's ability to maintain current momentum will depend on demand for the token and activity on the Binance smart chain.

Dune on-chain data revealed a 6.19% increase in weekly active addresses at the time of writing. However, network activity was not there yet and was shown by the 1.1% decline in weekly transactions.

This was also seen in network charges over the weekend.

Source: DeFiLlama

These findings are very important because they highlight the state of organic demand in the BSC. Strong network activity triggers demand for BNB, which pushes its price up.

This can be observed especially when there is more market confidence in altcoins.

From a volume perspective, on-chain data points to a significant decline in the last five months. The same was true for the last two weeks, when the market embraced more uncertainty.

Source: DeFiLlama

Read Binance Coin [BNB] Price Forecast 2024–2025

The return of altcoin season will likely lead to a resurgence of on-chain volume, closer to levels seen in March.

Although this has not yet been seen, BNB would likely benefit from a solid increase in demand in such a scenario. Meanwhile, a further decline from its current level could cause a wave of panic selling.

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