Binance Coin Network Activity Rises Despite Dull Price Action
The consolidation of Binance Coin (BNB) has been within a narrow trading range. Within the previous two months, most of its price action has been between the $15 support level and the $18 barrier.
Regarding the technical outlook of the cryptocurrency asset, the current stagnation phase is due to the Bollinger bands squeezing its 1-day chart. Such squeezes suggest times of low volatility, generally succeeded by wild price movements. The possibility of having a robust breakout increases with a longer squeeze.
However, higher volume that ensures the closing of a daily candlestick beneath or over this critical area will signal the BNB’s next direction. Further, a break of support or barrier will offer a clear signal of the direction of the asset’s trend. Nonetheless, the network is recording high levels of activity, thereby adding traction to this optimistic view.
In spite of the dull price action of BNB, the activity on its network within the previous couple of weeks is such that the daily active addresses have entered an uptrend while prices are still stagnant. Santiment noted that the divergence between the two is suggesting that the action is a bullish impulse. According to Santiment recently, once the buyers step in, the price of BNB may explode.
“As one of the largest gainers and least impacted crashers after the end of the 2017 bull run, people may soon be reminded why Binance Coin generated so much hype two and a half years ago. The coin associated with the #1 crypto exchange in the world has some serious potential with the DAA growth it’s seeing right now.”
It seems investors are now focused on cryptocurrency assets with small capitalization, especially the ones in the DeFi market sector; hence, there are higher chances of BNB recording a remarkable rally based on the daily active addresses growth.