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YEREVAN (CoinChapter.com) — Binance coin BNB is up today, jumping 5% to $253 in the previous 24 hours. Meanwhile, the reasons behind the uptrend are noteworthy, as are projections for the upcoming sessions. Let’s dive in and see why BNB is up today after all.
Why is BNB Up, And How Long Will It Last?
One significant factor contributing to this surge is the recent all-time high (ATH) transaction volume on the Binance Smart Chain (BSC). On Dec 7, 2023, BSC experienced over 32 million transactions daily, more than double its previous ATH.
According to the analytical platform DeFiLlama, the transaction volume has not dropped. While the transaction volume alone does not signify a bias ahead, it could indicate overall interest in the coin, propelling the price. As of Dec 12, the trading volumes stood at $726 million.
BNB Bulls Could Reconsider Their Stance
Binance exchange’s recent legal woes have hurt the credibility of the platform. In turn, many investors pulled back, and Binance did not receive institutional fund inflow in the previous month, according to CoinShares’ latest report. Meanwhile, the leading cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), saw inflow equal to $40 million and $14 million, respectively.
Additionally, the BNB market dominance decreased to 2% from over 5% at the beginning of the year. The drop could also result from the shattered trust between the exchange and its users. Thus, why BNB is up today could have a short-lived answer, as users can expect more turbulence ahead.
Mikkel Morch, Chairman of crypto investment fund ARK36, told CoinChapter that the declining dominance could signify a push toward decentralized exchanges (DEXs).
Binance’s waning dominance highlights the rising preference in the market for decentralized alternatives; their recent market-share slide comes as investors, wary of centralized exchange vulnerabilities, exposed by regulatory and legal issues, pivot towards DeFi and decentralized exchanges.
said Morch.
Technical Woes for Binance Coin
On Dec 12, the coin retested a resistance line at $255, but it could not break above it. The resistance has been instrumental in capping BNB’s upside attempts since June 2023. However, if the strong trading volumes persist, Binance coin could close the session above the said line.
The relative strength index (RSI) also approached its “overbought” limit at 70, above which the holders might consider unloading their BNB to hedge the recent gains.
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