Key Takeaways:

• BNB price has seen a 5.7% jump in the past week and about 35% since the beginning of 2023.

Technical Analysis: BNB Price surged by 5.7% in the past week

• BNB price has been trading within a range for a very long time. Ever since July 2022, the price of the BNB token has not been able to breach past the $330 mark. It did try to break past it but quickly saw selling pressures in the market and prices were forced to retreat.
• The range between $260 to $300 has also been a region of consolidation and accumulation for the BNB price (marked in grey on the chart).
• This point is further supported by the very rangebound movement of the Relative Strength Index between 40 and 60 for most of the time, since July 2022.
• In the last week, however, BNB price has managed to see a strong recovery of nearly 6% and is inching ever so closer to the $330 mark. Only if the price of the token is able to breach the $330 mark and stay above it convincingly, then will we see a recovery of the bullish trend.
• To further support the upcoming bullish narrative, we can also observe the formation of a bullish ascending triangle pattern (marked with yellow trendlines), indicated by a characteristic higher low pattern in prices. This could help BNB price to finally be able to breach the $330 mark and sustain above it.

BNB On-Chain Analysis Overview

While, BNB Smart Chain's native crypto token, BNB is seeing some promising price action from a technical point of view, its underlying on-chain fundamentals and metrics are on the poorer side.

For example, let's take a look at BNB's state of affairs on the DeFi side. According to data sourced from DefiLlama, BSC's total-value-locked in DeFi is at one of the lowest points in the past year and a half, and hasn't been able to recover too much since the beginning of 2023 either!

As is evident from the chart above, BSC's TVL has remained more or less stagnant since the beginning of 2023 and hasn't been able to show any great progress. This is very much in line with the value and market cap of its native token BNB, as discussed above.

Zooming out a little bit, BSC's TVL is in fact down over 55-60%, it had touched a high of over $11.8 billion in TVL and it is now close to $5.08 billion, as of writing this article.

Additionally, BNB token has seeen a significant drop off in the number of active addresses on the chain. According to data from Santiment, back in April 2022, BNB was averaging 10,000+ daily active addresses while now it is down below 5000, and has been below that level for the past nearly six months. Take a look at the chart below.

Binance Coin Price Prediction 2023

BNB price has been trading within a price range between $260 - $300 for a very long time, and hence some kind of breakout is long due in this particular token. And with some positivity coming into the overall crypto market, and Bitcoin price breaching $30,000 for the first time since June 2022, we could finally see a strong breakout coming from the third largest crypto by market cap.

Now, if we do see a breakout beyond the crucial $330 level, as mentioned earlier - we could see a strong run-up in the price of the token all the way to $450, which is the next major resistance level for the token - which would be a near 33-35% jump from the current levels.  

If we see that coming in the next quarter or so, then the next logical region of resistance for BNB price would be between $600-700. However, the chances of reaching that high seem very low as of now in the year 2023. But if we see a resumption of a bull run in the overall crypto market, with positive global environments, then reattaining its all-time-high (ATH) of $700 could be a possibility sometime in 2024.

Should you Invest in BNB in 2023?

BNB is definitely a token that you should keep an eye out for. It is one of the major large-cap coins that hasn't been able to perform very well in 2023 so far. While Bitcoin and Ethereum have managed to show recoveries of over 80% and 60% respectively, BNB has only managed to achieve about 35%. Hence there is room for more!

You can now use the Okto DeFi App to store your BNB tokens in a truly self-custodial manner and use it to invest in the best DeFi opportunities out there. BNB is a token that has become very popular in the world of DeFi thanks to the host of features and decentralized applications that are supported by BNB Smart Chain (BSC). You can invest in many of these popular DeFi protocols all through the Okto App!

Values as on April 11, 2023.

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