Binance Coin price analysis: the possibility of a price jump in the coming days

تحلیل قیمت بایننس کوین: احتمال جهش قیمت طی روزهای آینده

On the Binance Coin price chart, a pattern can be seen that can be followed both in the direction of a decrease and an increase in the price. The data related to the network of this digital currency, however, provide traders with good indications for predicting the fate of this pattern.

To Report Cointelegraph, in the 12-hour market view of Binance Coin, the native token of China’s BNB Chain ecosystem, a symmetric triangle pattern can be seen, the formation of which started on August 10 (August 19); When the price candle first hit the downtrend line resistance on the chart, at $335. During the 5 weeks after that, the price always fluctuated near $280; A level that is exactly the intersection of resistance and support of the symmetrical triangle on the chart.

Binance Coin price analysis: the possibility of a price jump in the coming days
Binance Coin price chart; 12-hour view of the “BNB/USD” market.

The decision of the market regarding the failure of this pattern to go up or down will probably be determined around September 30th (October 8); When these two trend lines meet each other. Binance Coin, which now has a market value of 45 billion dollars, has performed better compared to many prominent altcoins in the market and has experienced a 32% growth over the past 3 months.

The latest news related to the technical development of the Binance blockchain was announced on September 7 (16 Shahrivar). The developers of BnB China are going to unveil a new project called “zkBNB” soon, which is a new scalability solution. The test network of this project will probably be launched in November, and the purpose of its implementation is to increase the speed and reduce the cost of transactions on the Binance blockchain. Vitalik Buterin, the brainchild of Ethereum, also wants to use a similar solution for Ethereum, which is based on zero-knowledge proof technology. He had previously mentioned the importance of this technology in 2021.

BNB China is an Ethereum-compatible and fully application-oriented network that hosts many decentralized applications such as decentralized exchanges, blockchain games, lending platforms, social networks, yield aggregators, and non-currency token (NFT) markets.

A decline in China’s BNB deposits could be a bearish sign

Despite the 60% drop in the price of Binance Coin from its historical peak, this digital currency is still considered the third best digital currency in terms of market value, regardless of the rank of stable coins. In addition, 5.25 billion dollars of capital is also locked in smart contracts based on this blockchain; A measure that is also referred to as total value of locked up capital (TVL).

Despite the 32% growth of the price of Binance Coin over the past 3 months, the total value of the capital locked in this blockchain in terms of Binance Coin has dropped by nearly 20% during this period. A drop in this index is usually considered a negative factor, but the way it affects depends on the performance of competing networks.

Binance Coin price analysis: the possibility of a price jump in the coming days
Chart of the total value of the capital locked in the Binance network in terms of BNB.

Depreciation of the capital locked in different blockchains has become a common thing during this period. For example, the value of capital locked in the Solana network has decreased by 27.5% in the last 3 months. During this period, Ollench and even Ethereum faced a 36% and 29% decrease in the value of the capital locked in their networks, respectively, in which the total value of the capital locked in the Ethereum blockchain went from 30 million Ether on June 18 (June 28) to 21.2 million Ether. it is arrived.

However, if we want to consider the dollar value of funds locked in Binance network smart contracts, the current $5.25 billion has increased by 5% compared to the last 3 months; The same conditions for Ethereum, Olench and Solana does not apply.

Increasing the use of Binance network decentralized applications

To determine whether the decline in the value of capital locked in the Binance network (in terms of BNB) is related to the decrease in the number of users of this blockchain, we need to examine indicators related to the use of decentralized applications. Users of some of these decentralized applications, such as platforms active in the field of blockchain games or NFTs, do not require large deposits. Therefore, the TVL index is not related to such programs.

Binance Coin price analysis: the possibility of a price jump in the coming days
China’s top decentralized BnB applications based on the number of active addresses in the last 30 days.

PancakeSwap, the most popular decentralized exchange of Binance blockchain, has had 1.75 million active addresses in the last 30 days, and in this respect, it has the highest rank among all decentralized programs in all blockchain networks. It should be noted that there are only 3 decentralized programs in the Ethereum network, whose number of active users exceeds 35,000 in the last 30 days. These 3 programs are Open Sea, Uniswap and MetaMask Swap.

During this period, the amount of use of 3 decentralized programs active in the Binance blockchain has grown by more than 190%, among which the Gameta platform has performed best with more than 900,000 active addresses. Now, if another program active on the Binance network after PancakeSwap manages to cement its place among the top decentralized programs of all blockchain networks, critics of BNB China will be in for a tough time.

If we are to judge the situation only based on statistics and figures, from the 20% decrease in the value of the capital locked in the Binance network in terms of BNB and the 14% drop in the number of active addresses of the decentralized applications of this blockchain, we can wrongly conclude that Binance Coin is due for a downward correction. it is ready.

However, a more detailed analysis of these statistics, including a comparison with the situation of other competitors, shows that reaching the end of the symmetrical triangle pattern on the 12-hour chart (mentioned above), is likely to be a bullish trigger for this cryptocurrency. .


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