BNB Price Crosses $630, Will it Reach New All Time Highs ?

The price of BNB rose above $631 on Tuesday, May 21, just 8% shy of its all-time high despite Binance’s high-profile legal battles with regulators in the United States and Nigeria.

BNB Soars Despite Chanpong Zhao’s Firing, Nigerian FUD

Prices of Binance-launched BNB coin were among the top gainers among large cryptocurrencies on May 21 as news of the imminent approval of an Ethereum ETF gained momentum.

An astounding 7% increase in the price of BNB in ​​the past 48 hours has seen the native token on the BNB chain rise from a 65-day high of $631 each.

Binance Coin (BNB) Price Trends | January - May 2024 | TradingView
Binance Coin (BNB) Price Trends | January-May 2024 | TradingView

BNB’s staggering 105% year-to-date price increase comes at a time when the Binance exchange has come under increased regulatory scrutiny.

Notably, on November 26, 2023, when it was announced that the US SEC had fined Binance $4.6 billion and that founder and CEO Changpeng Zhao had resigned, the price of BNB plummeted 11%.

Negative sentiment was further fuelled by Nigeria’s arrest of two Binance employees in 2024 on charges of currency manipulation.

Despite rapid withdrawals and declining trading volumes, as well as growing market FUD surrounding Zhao Changpeng’s sentence, BNB price action has turned the tide.

With the expected approval of an Ethereum ETF, market dynamics are expected to change in favor of exchange tokens like BNB.

As investor participation surges amid price increases, we expect to see a surge in trading volumes and user base across major exchanges such as Binance, increasing the value accumulated for BNB holders.

BNB Price Prediction: Bulls defend $550 support level

The price of BNB is trading at $614 at press time on May 24, declining slowly from a 24-hour high of $631. With investors anticipating approval of an Ethereum ETF, the price of BNB could surge to an all-time high above $690.

However, if the market enters a consolidation phase ahead of the SEC ruling on ETH ETFs, BNB bulls will likely try to avoid a reversal below $550.

BNB Price PredictionBNB Price Prediction
BNB Price Prediction

Supporting this stance, BNB traders in the derivatives market opened up leveraged long positions of over $60 million at the $548.6 price level.

Considering that the $60 million in long positions far outweigh the $35 million in active short contracts, it is likely that bulls will continue to control BNB price momentum in the short term.

On the other hand, the bulls may face a major sell-off near the psychological resistance level of $650.

Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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