The native cryptocurrency of BNB Chain, BNB, surged past the $800 mark during early Asian trading on Wednesday, reaching a new peak of $801.
This increase followed a 5% rise in the last 24 hours and a 13% climb over the past week, elevating BNB’s market value to exceed $110 billion. It now stands as the fifth-largest cryptocurrency by market cap.
Significant Uptick in Trade and Derivatives Activity
Trading volumes for BNB have seen a notable rise. Coinglass data reveals that daily trading volume soared over 40% to surpass $3 billion. Derivatives trading volumes increased by 31% to $2.18 billion, while the open interest in BNB futures rose by 19% to $1.23 billion.
This indicates a growing wave of speculative interest and demand for BNB, potentially driven by new capital entering the market.
The upward momentum around BNB seems to be riding on positive sentiment following its recent price movements. The token has been on an upward trajectory for several weeks, and breaking past previous highs shows that buyers remain optimistic despite signs of a potentially overheated market.
Currently, the relative strength index (RSI) is significantly overbought at 87.50, suggesting a potential market correction soon as levels above 70 typically indicate such a possibility.
However, the upward trend continues. BNB is trading well above its 20-day simple moving average of $704. The combination of rising prices and robust volume often serves as a confirmation of trend strength.
Nano Labs Acquires $90 Million in BNB
Institutional purchasing may be fueling the upward movement. On July 22, Nano Labs Ltd, a Web3 infrastructure company founded in China, announced it had acquired 120,000 BNB tokens, valued at approximately $90 million, through over-the-counter transactions at an average price of $707 per BNB.
Nano Labs views BNB as a strategic reserve asset and plans to continue expanding its holdings, along with investing in companies aligned with the BNB ecosystem.
This long-term investment strategy can instill confidence among retail investors closely monitoring BNB’s performance.
Despite the optimism, there are some cautionary signs emerging. BNB is now trading beyond the upper Bollinger Band, which may suggest the token is overextended.
Featured image from Unsplash, chart from TradingView
