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Key Insights:
- After Binance Coin price broke its ATHs, it entered into extraordinary FOMO sentiment among traders.
- The crowd sentiment become overly bearish whilst the smart cash sentiment become slightly bearish.
- BNB’s dApps were driving the price with PancakeSwap and Four.Meme leading in adoption to real-world Applications.
Binance Coin (BNB) price hit a new ATH in the previous day as of press time suggesting it was following in the footsteps of Bitcoin (BTC). Binance’s correlation with BTC was at 0.93 affirming the similarity market reactions.
After BNB price hit the new peak, the overall altcoin market was flipping the altcoin season index according to data from CoinMarketCap.
Also, Binance founder Changpeng Zhao (CZ) reiterated the rising FOMO among retailers as altcoin dominance rose, hinting of an Altseason.
Binance Coin (BNB) Price Action
Looking at the BNB price chart, after the altcoin achieved its ATHs, it went into a period of insane FOMO fueling the asset to move higher.
Analysis from well-followed trader, Lady M on X (formerly Twitter), showed that BNB broke out of a definite trading range that had consolidated around the ATHs.
The RSI indicator which had previously been oversold was also indicating a strong turn around. The RSI had moved up to overbought territories indicating high buying pressure.
The volume also increased so much in this rally pointing at an increase in the participation in the market.
The breakout was a sign of a more bullish environment, and it could exceed the $800 range. The technical perspective was positive unless there was a strong pull-back, the share price targets were still pointing upwards.
BNB Crowd And Smart Money Sentiment
However, the sentiment analysis spelled caution. The crowd sentiment was excessively bearish with a reading of -1.68. This meant that a majority were bearish.
The institutional investors seconded the current Binance coin price sentiment. Their hesitation was reflected as their sentiment position reading was -0.14. This deviation indicated that there could be short-term volatility probably in the seller direction.
In case the crowd sentiment continued towards the negative, the downward pressure would be amplified. However, the risk-averse attitude of the smart money might not allow its sharp fall. Therefore, a consolidation was possible.
BNB dApps Supporting Its Price Though Use
That aside, BNB price was doing great following its growing decentralized applications (dApps) usage. PancakeSwap and Four.Meme were leading the Binance Smart Chain (BSC) dApps. They both represented increased usage of the Binance coin in the real world.
PancakeSwap was battling it out with other decentralized protocols and was leading in monthly DEX volume. PancakeSwap almost doubled the daily DEX volume of the second-placed Uniswap.
Additionally, Four.Meme was also rising among top launchpads for memecoins. Its Total Values Locked (TVL) as of press time was at $2.11M while its DEX volume reached $56M.
Also, the significant projects that have been running on the BNB Chain since 2022, strengthened the trust of the ecosystem. These BNB’s launchpads guarantee safe and fair token releases.
All these real dApps with the actual usefulness were also a potent base to expand and capture the spotlight to furnish the BNB Chain. With the booming DeFi on BNB, the price could continue going higher despite the current caution.
BNB Top Currency And Market Pairs
Worth noting, BNB’s most traded currencies and pairs in terms of trading volume also indicated its wide usage across different financial markets.
For market pairs, BTC/FDUSD, ETH/USDT and ETH/FDUSD were the most dominant with 9.49%, 8.37% and 7.45% respectively. On the currencies side, FDUSD, USDT and USDC dominated with Tether‘s crypto leading with 50%. Also EUR and JPY appeared in the list.
These pairs were frequently the most liquid and as such were the basis of price discovery and turnover. This trading activity showed that the BNB market was active and could be an indicator of possible movements and trends in price.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
