The $800 Target: 3 Reasons for BNB Price

BNB (BNB) has experienced a two-day rally that increased its value by 5.5% to reach a high of $605 on May 9. Despite a pullback below $600, BNB’s longer-term outlook remains bullish. Over the last 30 days, the layer 1 token has surged 83%, and in 2024 alone, it has increased by 91% to reach a multi-year high of $645 on March 16. With BNB being within 7% of its all-time high of $690, traders are eager to know when the token will break out towards new highs.

Binance exchange continues to dominate in terms of trading volumes and market share, even after facing legal challenges in 2022. Despite a decrease in market share in April, Binance’s share still accounts for over 33% of spot volume across centralized exchanges. CoinMarketCap data also confirms Binance’s dominance, with the exchange contributing $15.86 billion (24.9%) to the total 24-hour trading volume on all crypto exchanges on May 10.

BNB’s recent price action has led to increased network activity on the BNB Chain. Data from DefiLlama shows a 54% increase in the total value locked (TVL) on the BNB Chain in 2024. This suggests that users and developers are interacting more with the network. DappRadar data reveals that the BNB Chain outperforms Ethereum and Polygon in terms of the total number of decentralized applications (DApps) and transaction volume.

Technicals point to a bullish scenario for BNB. The price is consolidating in a “bullish pennant” pattern, indicating a potential breakout to new all-time highs. Analysts predict a massive bullish rally if the breakout occurs, with price targets ranging from $1,000 to $800. The moving average convergence divergence (MACD) indicator also suggests favorable market conditions for BNB’s upside.

Key levels to watch are the upper trendline of the pennant at $610 and $650. To push the price towards all-time highs at $690 and the technical target at $800, the bulls will need to flip these barriers into support. This would represent a 37% increase from the current price.