Binance Coin (BNB) Price Reacts to Its Decentralized Exchange Protocols' Monthly Volume Surpassing $100 Billion Milestone

Binance Coin has formed a golden cross as its decentralized exchange protocols' monthly volume surpassed a key milestone.

Binance Coin price rose on Sunday after data showed that the decentralized exchange protocols on its Smart Chain had a monthly volume of over $100 billion. This growth saw the chain overtake Ethereum and Solana, whose DEX protocols had a volume of $67 billion and $97 billion, respectively.

Most of BSC’s volume happened in the last seven days, when it had a 133% increase to over $55 billion. PancakeSwap is handling most of this volume as it continues to dominate the ecosystem. It had $50 billion in the last seven days and $92 billion in the last 30 days. It also crossed the $1.62 billion cumulative volume mark.

Other top DEX networks on the BSC Chain, such as Uniswap, THENA, Dodo, and SquadSwap, also saw higher volumes in the past few weeks.

The BSC Chain has seen more activity after its last two protocol upgrades: Pascal and Lorentz. Pascal deepened its integration with the Ethereum network, while Lorentz reduced its block time from 3 seconds to 1.5 seconds.

The next key catalyst will be the Maxwell upgrade, which will improve its speeds further and make it better than Ethereum and Solana. While the date has not been announced, the developers noted it will happen in June.

BNB token bottomed at $510 in February and March. It neared that support level in April, forming a triple-bottom pattern with a neckline at $645.

Now, the BNB price is reacting to the ongoing demand for the BNB Smart Chain ecosystem. After a challenging period in February and March, when the token bottomed at $510, it approached that support level again in April. During this period, the price action formed a triple-bottom pattern, typically observed in technical analysis. This pattern is defined by three lows at roughly the same price level, which in this case was around $510. The neckline of this pattern was placed at $645, indicating the resistance level that needed to be breached for the triple-bottom to be valid.

Later, the BNB token broke above this neckline resistance, suggesting further gains.

As the price rose, it formed a golden cross pattern as the 50-day Weighted Moving Average moved above the 200-day one. A golden cross is usually observed after a bear market and signals the potential for more gains.

Moreover, the price is now consolidating above the 200-day SMA, an indicator that is often used by long-term traders to identify the overall trend of the market. When the price is above the 200-day SMA, it suggests that the long-term trend is still bullish.

Finally, the BNB token price reacted to the broader cryptocurrency trends. After Bitcoin price lost some momentum, the altcoins followed suit. However, they are likely to continue reacting to the trends in Bitcoin.

Next, the BNB price will be in focus as it approaches the key resistance level at $690, the highest point this month. If this happens, it will increase the chances of it rising to the next resistance level at $795, the highest point on December 4 and 20% above the current level.