BNB Explodes to $801 ATH: Institutional Buying Fuels Rally
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BNB, the native cryptocurrency of BNB Chain, reached a new all-time high of $801, driven by a surge in trading volume and apparent institutional investment. The price increase follows a 5% rise in the last 24 hours and a 13% gain over the past week, boosting its market capitalization to over $110 billion, solidifying its position as the fifth-largest cryptocurrency. This surge is accompanied by a significant increase in trading volume; daily volume rose over 40% to over $3 billion, with derivatives volume jumping 31% to $2.18 billion, and open interest in BNB futures climbing 19% to $1.23 billion. This heightened activity points to increased speculation and demand. The rally appears fueled by bullish momentum, with the token maintaining an uptrend for weeks. However, the relative strength index (RSI) at 87.50 suggests the asset may be overbought and a pullback could be imminent. Despite this, BNB remains above its 20-day simple moving average, indicating a strong trend. Adding to the bullish sentiment, Nano Labs, a China-founded Web3 infrastructure company, recently purchased $90 million worth of BNB, viewing it as a strategic reserve asset. This institutional investment further bolsters confidence among retail investors. Despite the positive indicators, caution is warranted as BNB's price is currently trading above the top Bollinger Band, suggesting the price might be overextended. This situation presents a complex picture: while the current trend appears robust, fueled by substantial institutional interest and high trading volume, the overbought RSI and positioning above the Bollinger Band indicate potential for a correction.
(Source: https://www.newsbtc.com/altcoin/big-money-enters-bnb-pushing-crypto-to-801-ath-details/)
