BNB Token Surges 18% as Binance Chain Outpaces Ethereum, Solana

Binance’s BNB token has experienced a significant surge in value, rising by 18% over the past week. This increase has positioned BNB as the top-performing cryptocurrency among the top 10, with its price currently hovering around $630.85. The token even reached a weekly high of $640.42, showcasing its strong momentum in the market.

This remarkable performance can be attributed to several factors, including the investment by Binance co-founder Changpeng Zhao in the BNB Chain-based Mubarak (MUBARAK) meme coin. This investment led to a notable increase in the trading volume of the Binance Smart Chain (BSC) decentralized exchange (DEX).

As of March 18, the DEX volume on the BSC stood at $2.61 billion, surpassing both Ethereum and Solana. Over the past week, BSC recorded $5.154 billion in DEX volume, significantly outpacing Ethereum and Solana. This shift is particularly noteworthy as Solana had previously been the leader in the DEX space, but BNB Chain’s recent performance suggests a change in market dynamics.

The increasing adoption of PancakeSwap, the leading DEX on the BNB Chain, has also contributed to BNB’s rise. PancakeSwap’s low fees and high-speed transactions have attracted users away from Ethereum-based platforms. Additionally, the launch of the Springboard memecoin platform in December has made token creation more accessible, further boosting Binance’s ecosystem.

Crypto analyst CryptoELITES has highlighted a critical resistance level from 2021 that BNB is on the verge of breaking. If this resistance is successfully breached, the analyst predicts potential targets of $1,000, $1,250, $1,500, and even $2,000. A potential bull run could even see BNB reaching $5,000 as an ultimate goal. The chart provided by CryptoELITES shows a clear cup-and-handle formation, a classic bullish pattern that supports the possibility of a breakout to $5,000.

Additionally, the Relative Strength Index (RSI) currently stands at 56.39, indicating that BNB is in a bullish zone but not yet overbought. Meanwhile, Bollinger Bands (BB) show BNB’s price near the upper band at $643.11, suggesting strong momentum but also a possible short-term pullback if resistance holds. The 20-day Exponential Moving Average (EMA) at $601 acts as a major support level. If BNB maintains this support, higher prices could follow.