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.
Altcoin Watch
After an impressive rally of 23.7% between October 25 and 31, Binance's BNB (BNB) coin was strongly rejected by the $330 resistance. 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 12 hour chart on Binance, USD. Source: TradingViewAnalysts pinned the recent rally on the October 28 news that Binance invested $500 million in Twitter. However, network repositories and decentralized application (DApp) metrics did not accompany improved 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 lost SOL ( SOL) 82% and Polygon's MATIC (MATIC) recorded a correction of 79%.
To understand if the recent 6% drop is a warning of a deeper correction, traders should look at network usage in terms of deposits and users.
BNB TVL fell less than its competitorsGenerally, analysts tend to place too much weight on the Total Locked Value (TVL) metric. While this may be relevant for the decentralized finance (DeFi) industry, it is rarely needed for crypto games, the non-fungible token (NFT) market...
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.
Altcoin Watch
After an impressive rally of 23.7% between October 25 and 31, Binance's BNB (BNB) coin was strongly rejected by the $330 resistance. 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 12 hour chart on Binance, USD. Source: TradingViewAnalysts pinned the recent rally on the October 28 news that Binance invested $500 million in Twitter. However, network repositories and decentralized application (DApp) metrics did not accompany improved 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 lost SOL ( SOL) 82% and Polygon's MATIC (MATIC) recorded a correction of 79%.
To understand if the recent 6% drop is a warning of a deeper correction, traders should look at network usage in terms of deposits and users.
BNB TVL fell less than its competitorsGenerally, analysts tend to place too much weight on the Total Locked Value (TVL) metric. While this may be relevant for the decentralized finance (DeFi) industry, it is rarely needed for crypto games, the non-fungible token (NFT) market...
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