BNB’s Epic Rally: Here’s the Short Squeeze Story!
On Friday, BNB soared to a new all-time high of $1,133.40. A short squeeze and network fee reductions were the catalysts for this rally, which was the strongest of the main cryptocurrencies. According to CoinMarketCap data, BNB is up 7.17% on the day and has now extended its weekly gains to 19.73% at $1,133 as of the time of publication. In this regard, out of the top 10 cryptocurrencies in terms of market value, BNB had the biggest increase. With a current market valuation of more than $157 billion, BNB is still the fifth-largest cryptocurrency.
Over $7.7 million in short positions were liquidated, triggering a short squeeze that accelerated the upward move,
Dean Chen, an analyst at crypto exchange Bitunix
BNB Breakout Ignites Optimism: Can $1,200 Be Next?
Chen observed that more users and developers participated when BNB Chain lowered transaction fees to just $0.005 per transfer. Additionally, the market’s sentiment changed to one of optimism following a strong breakout above the $1,084 resistance level. Moreover, short-term targets are now aiming for $1,200.
The RSI indicator is approaching overbought territory, signaling potential near-term pullback risks,
Chen
BNB Set for Bigger Gains as Network Upgrades and Institutional Demand Intensify
Network improvements, on-chain momentum, and institutional demand all contribute to the BNB token’s surge, according to Illia Otychenko, CEX.IO’s Lead Analyst.
Additional improvements are expected in the coming months, further supporting the bullish outlook,
Otychenko
Projects like Aster and PancakeSwap, Otychenko continued, have brought in a slew of new users and funding. In the last two weeks, this has increased the quantity of stablecoins by around $2 billion, or 17%. In addition to network fundamentals, the analyst pointed out that rumors over a possible U.S. spot BNB ETF increased demand for BNB as a treasury asset. This strengthened the token’s positioning as more than just a utility asset and drove the surge.
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