The recent surge in Binance coin price has propelled it to its highest level in history. This price of the native asset of the Binance ecosystem has exceeded its 2021 peak and is now aiming for further highs. The bullish Bitcoin price action is favoring the investor sentiment around BNB and other altcoins.
On Thursday, BTC is changing hands above the $71,000 level but the traders remain cautious due to the likelihood of another rejection from the key level. As a result, most altcoins are trading sideways with a few coins like BRETT, STX, MNT and SUI outperforming the broader market in the last 24 hours.
Despite a strong surge in the BNB price, the total locked value (TVL) on Binance Smart Chain (BSC) remains far below its all-time high. According to the latest data from DeFi Llama, the network TVL currently stands at $5.84 billion. This is 6.5% down from the yearly peak and a 71.7% decline from its 2021 all-time high.
This suggests that the ongoing rally in Binance coin price is not supported by a similar growth in the network adoption. Another cause of concern is that the recent surge in the exchange coin is not backed by strong trading volume.
On April 30, Binance founder and ex-CEO, Chengpeng Zhao (CZ) was sentenced to four months in prison by a US federal judge. The billionaire founder of the biggest US exchange reported to a federal prison in California earlier this week to start this sentence.
For a better understanding of the BNB/USD price action, let’s analyze its chart on the weekly timeframe. The following chart tells us that since its bottom in Jun 2022, the price has soared 283%. The chart also reveals a major supply zone above $670 which is acting as a resistance.
For Binance coin price prediction to flip bullish, this supply zone must be turned into a demand zone. Although the price is currently trading above this level, this week’s candle closure will be very critical. In case of a closure above $700, the immediate bullish target can be $737. However, if Bitcoin puts a new high, an extended rally toward $969 is also on the cards.
This bullish target comes from the 1.618 fib retracement level when connecting the November 2021 peak to the June 2022 low.
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