BNB takes back its spot from SOL: Will the $400 price prediction come true?
- BNB became the best-performing top-10 asset in the last 24 hours.
- If accumulation continues to increase, BNB may head toward $400.
Binance [BNB], the native cryptocurrency of the Binance exchange, seems to have gotten a wake-up call to take back its place from Solana [SOL]. On the 27th of December, the BNB price surged past the $300 psychological resistance.
As a result of the breach, BNB was able to record a 10.15% rise in the last 24 hours.
At press time, the coin was back in the fourth position with a market cap of $50.92 billion. A few days back, AMBCrypto explained how SOL took the place of BNB due to the incredible rise in value.
However, the last 24 hours have not been rosy for SOL, whose performance all year long has been worthy of emulation.
Binance Coin: Back in fourth place
Within the same period, as BNB jumped, SOL’s value decreased by 6.99%. It is worth noting that Binance Coin has had its share of challenges.
On different occasions, the coin had to cope with Fear, Uncertainty, and Doubt (FUD) because of the regulatory troubles of its underlying exchange.
Despite the price increase, traders are bearish on the Binance Coin. According to Santiment’s data, BNB’s Funding Rate was -0.048%. Likewise, its Weighted Sentiment also dropped to 0.953.
The decline in the metric was a testament to the fact that the negative sentiment around BNB had not yet faded.
Source: Santiment
While many might think this position implied “doomsday” for BNB, AMBCrypto’s analysis considered the trend positive for the price.
A look at the chart above showed that the Weighted Sentiment and Funding Rate were down in the red on the 14th of December.
However, that position laid the ground for a price increase. The same thing occurred around the 23rd of December. Days later, the BNB price crossed $300. Should the metrics remain in the same state, then shorts risked being liquidated.
No stopping the breakout?
But it is also important to mention that on-chain data alone might not be enough for the BNB prediction. That was why the next phase AMBCrypto considered was the technical outlook.
From the 4-hour BNB/USD chart, the coin formed an asymmetrical triangle between the 18th and 25th of December.
Asymmetrical triangles are patterns indicating a potential breakout for a cryptocurrency shortly after a consolidation period. Between the mentioned period, BNB ranged between $260 and $275.
But the breakout was spotted at $266. This gave rise to the surge that began on the 27th.
However, the Relative Strength Index (RSI) showed that the coin was overbought. So, it is likely for BNB to experience a slight reversal.
But on the other hand, the Accumulation/Distribution (A/D) reading increased. This increase is a sign of buying pressure.
Source: TradingView
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Thus, if BNB holders do not decide to distribute, chances are high that the coin price might close in on the $400 region. If this happens, a move to surpass its All-Time High (ATH) could be validated in the anticipated 2024 bull market.
However, that might not happen as early as January.
