Binance Coin BNB/USD Rallies to $673, Hitting Its Highest Level in a Week

The token rose more than 6% from last week's low of $637, with bulls now eyeing the $700 resistance.

Binance Coin (BNB) price showed signs of breakout on Thursday, as bulls pushed the token past the $670 immediate resistance.

At the time of writing, at around 07:25 AM ET (11:25 GMT), BNB/USD traded at $673, up more than 6% from last week’s low of $637. The move puts the token on track to test the $700 psychological resistance, which could open the door toward the next Fibonacci level at $720.

The price move was supported by a string of five green daily candles and persistent dip-buying below $670. Momentum is also building as the Relative Strength Index (RSI) broke above 50, and a bullish crossover on the MACD histogram could be imminent. Intraday wicks continue to print lower shadows, signaling strong demand at key levels.

Open interest in BNB futures rose over 4% to $761.3 million, according to CoinGlass, while funding rates ticked up to 0.0034%. The long-to-short ratio remained above 1, and short liquidations ($385,000) notably outpaced longs ($137,000), a clear indication of bearish pressure unwinding.

In a post on X, analyst Bitcoinsensus highlighted the staggering 24-hour DEX volume on BNB Chain compared to Ethereum (ETH) and Solana (SOL).

Reporting over $5.61 billion in trading volume, the Smart Chain outperformed both Ethereum, with $2.37 billion, and Solana, with $2.31 billion. It translates to a 45% market share, highlighting BNB Chain’s grip on DeFi retail flow.

Solana, known for its competitive edge in DEX liquidity, came in fourth with a 17.8% share, followed by Base at 9.4% and Arbitrum at 3.6%. Fragmentation across newer platforms has yet to challenge BNB’s market leadership.

The Resolv (RESOLV) stablecoin launch also added fuel to the narrative. Released on June 11 under Resolv Labs’ HODLer Airdrops initiative, the stablecoin is backed by Ethereum and Bitcoin reserves. Early trading generated $347 million in volume, and CoinMarketCap data showed RESOLV rising 40.8% on the week to $0.34.

Strong uptake among BNB holders could bode well for the stablecoin's performance and reinforce bullish sentiment around the ecosystem.

Earlier this week, Binance completed and published its Proof of Reserves audit report for June 2023. The report showed a 111.74% reserve ratio for BNB, with approximately 7.33 million tokens held against 6.45 million in user deposits. Binance also maintained significant buffers in BTC and stablecoins, underscoring its liquidity strength.

Bitcoin has held above the $109,000 since last week, helping sustain positive risk sentiment across the crypto market. Spot ETF inflows and a more stable macro backdrop have opened the door to renewed capital rotation into tokens like BNB.

On-chain data from Panda Jackson shows a surge in volume from high-value wallets, transacting over $10 million, on the BNB Smart Chain. While no leadership changes were reported, the jump in whale flows suggests growing interest from funds and large players.

Despite the hype around Layer-2s, BNB’s competitive edge appears intact. While Base and Arbitrum recorded $1.15 billion and $624 million in DEX volume, respectively, BNB Chain’s cohesive liquidity and single-chain architecture continue to attract users.

Fragmentation across newer platforms has yet to challenge BNB’s market leadership, highlighting the Smart Chain’s enduring appeal despite the emergence of new technologies.

This analysis has not been passed by any person who, in accordance with Section 1 of the Proviso to Part I of the Financial Services and Markets Act 1991, would be authorised to pass it if it were a financial promotion, and it is not passed by any person who is, or has reasonable grounds to believe that he is, an authorised person within the meaning of Section 14 of that Act.