BNB Channel Cools After 24% Rise, But Strong Fundamentals May Support Next BNB Rally

BNB price took a brief break after a recent double-digit rally, but TVL and DApp usage by the network are reasons why investors remain optimistic.

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After an impressive 23.7% rally between October 25 and 31, Binance Chain BNB faced strong rejection from resistance at $330. Is it possible that the 6% two-day sell-off from the $337.80 high could indicate more trouble ahead?

Let's see what the data shows.

BNB Coin (BNB) 12 hours at Binance , usd. Source: TradingView

Analysts pinned the recent rally to news on October 28 that Binance had invested $500 million in Twitter. However, network deposits and decentralized app metrics have not accompanied the improvement in sentiment.

The strong upward move was largely based on reports that Binance was gearing up to help Twitter root out bots. Speculation emerged after billionaire Elon Musk raised the $44 billion needed to complete his purchase of the social media platform.

In absolute terms, BNB's YTD performance reflects a 40% decline, but ranks ahead of its peers as Ether (ETH) is down 59%, Solana (SOL) 82 % and Polygon (MATIC) records a correction of 79%.

To understand whether the recent 6% decline is a harbinger of a deeper, more...