Binance's Spot Market Dominance Boosts BNB Price, Setting the Stage for a Breakout

The crypto market kickstarted April on a bullish note as Bitcoin teased another breakout from $85,000. While this uptick isn't sufficient to change market dynamics

April saw the crypto market kickstart on a bullish note as Bitcoin teased another breakout from $85,000. While this uptick isn’t sufficient to change market dynamics, certain altcoins like BNB continue to demonstrate dominance in their field. Recent data on spot market volume highlights Binance’s performance among other exchanges, showcasing its potential for higher rally.

Key Highlights

Binance’s Spot Trading Dominance Fuels BNB Growth

Amid the recent market uptick, the BNB price displayed a bullish bounce from $587 to $616, registering a +5%. The price trajectory is gaining momentum, and Binance exchange records its continues dominance as it claims a staggering 43.66% share of the total spot market.

The exchange has recorded over $1.9 trillion in cumulative spot volume since the beginning of the year.

CryptoQuant’s analysis reveals that Binance’s share, out of the total $4.56 trillion spot trading volume, is more than 3.6 times greater than its nearest rival. Its activity surpasses the combined volume of the next five largest exchanges, cementing its status as the industry’s central trading hub.

Binance growth curve will positively boost the usage of its native cryptocurrency BNB, driving its price higher.

Inverted Head and Shoulder Pattern Set +20% Rally Ahead

Since mid-March, the BNB price has consolidated in a narrow range from $643 to $593, presenting an uncertain market sentiment. While these short-bodied candles indicate no clear initiation from buyers or sellers, a closer look at the 4-hour time frame chart highlights the formation of an inverted head and shoulder.

This pattern consists of three troughs, with the middle trough (head) being lower than the two surrounding shallower pullbacks (shoulders). If this chart setup holds true, the BNB price is poised for a bullish breakout from the neckline resistance at $645.

The potential surge will see the key daily EMAs (20, 50, 100, and 200) get claimed again, reinforcing the idea of a renewed recovery trend. Thus, the coin price could chase a 21% rally in the coming weeks to hit the $784 level.

On the contrary, if sellers manage to counterattack at the neckline resistance, the BNB price could experience another decline to the $550 support.