
Binance Coin (BNB) has experienced a price stagnation since November. Since that time the value has been fluctuating between $555 and $656. During the past 24 hours, BNB price dropped by 8.5% to reach $566 BNB/USDT shown on Gete.io Crypto Exchange at the time of writing. Also, within the past two weeks, its price increased by 5.3%. The following graph shows BNB’s performance within the last 7 days.
Based on the above graph and other technical indicators BNB is within a sideways market. Although the Ichimoku Indicator is showing a bullish outlook the momentum is weak. This is because the future kumo (cloud) is not upward sloping. Instead, it is almost flat. Similarly, the ADX reading is 16.20 which indicates a very low price volatility. The only observable good thing is that BNB has a high trading volume. It is important to note that its current price is about 22.7% below its all-time high of $718.88, attained in June 2024. As the BNB is futures trading at $571.70 BNB/USDT on Gate.io crypto exchange.
Many investors are worried that the altcoin’s price has remained within a short range for a long time while other digital currencies are trending. Its low volatility could be the main reason for that price stagnation. Generally, high volatility enables the value of an asset to rise significantly if there is a rise in the buying pressure. Nevertheless, if the volatility is low even if there is high buying pressure its price may increase by a very small margin within a given period. According to the Average Directional index (ADX) BNB’s price volatility has been very, low for the past month.
In the image above, the ADX indicator, found on the lower bottom of the chart, shows BNB’s volatility since February. For most of the time BNB’s ADX reading was between 10 and 23. This range shows very low crypto volatility. The general rule among traders is not to execute a trade when the asset’s volatility is below 25. In fact, 25 is the neutral point. Short-term traders are encouraged to open a trade if the ADX reading is above 25. Since November the BNB ADX reading surpassed 25 on 22 November 2024 only. However, by the end of that trading day, it had dropped below 23. The low BNB volatility makes it difficult to break above key resistance levels.
After a short price pump last week BNB experienced a decline again. That price fall came after it met stiff resistance at around $660. Right now the Binance coin is within a price correction that may see it retesting the support level at the $605 mark. Its Relative Strength Index reading is 58.33 after it dipped below the center line and recrossed above it. Since the RSI is rising it indicates a bullish momentum. Some crypto analysts predict the BNB price to rise by large margins during the next few months. For instance, Thales Melo has forecasted the BNB value to range between $900 and $1,400 BNB/USDT during the next 6 to 12 months.
Crypto analytic platform Gate.io has predicted the price of BNB to rise to $650 by mid of 2025. In the longer period, it may reach $661 by the end of November. This shows that it may gain by very small margins. By the end of the year BNB may trade at around $673 BNB/USDT. If it meets these targets it will lay a strong foundation for a better performance in 2026.
There is no doubt that BNB has much potential for an astronomical price increase in coming months. If the coin price breaks above the $662 resistance level that can trigger a positive market sentiment towards it. Also, if it breaks above that level that will confirm a bullish trend. Some of the asset’s key resistance levels are $720 and $750.
After finding out the reason why BNB’s price is struggling to reach new highs some investors may want to know if the cryptocurrency is a good investment asset. Based on the existing statistics and the asset’s fundamentals BNB remains a good investment asset. First, the asset still dominates in the market considering that it is the third largest cryptocurrency by market capitalization. During its recent price surge BNB and its derivatives had a trading volume of over $100 trillion. This shows how high its demand is. Also, the fact that BNB is the native asset for Binance Smart Chain means it may command higher demand in the future than now.
In general Binance Smart Chain has several reputable partnerships that help to enhance BNB’s utility. For instance, recently Binance forged alliances with several African countries to integrate BNB with several mobile applications. These partnerships will likely lead to the higher adoption of BNB and other cryptocurrencies in the future. Despite these important BNB use cases and partnerships the coin faces market volatility like all other digital assets. Therefore, investors should carry out technical analysis before investing in the asset.
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