BNB Price Prediction: Sideways Movement And Strong Demand, A Rally Around The Corner?

Since March, the price of BNB, previously also known as Binance Coin, has barely fallen below $500, despite the broader crypto market downturn.

BNB, previously also known as Binance Coin, has shown impressive resilience to the broader crypto market downturn, with its price barely falling below $500 since March. This strength is largely due to strong demand for the coin, which has seen it quickly rebound after every drop.

According to the latest BNB price forecast by CoinCodex, the coin is still expected to rise by 25% and reach $650 by October 10, 024. However, the broader market sentiment is still bearish, with the Fear & Greed Index at 33, indicating uncertainty in the market.

This mixed outlook raises questions about BNB’s near-term trajectory, with the possibility of growth in the long run but short-term conservatism being required due to recent coin volatility and broader market dynamics.

Despite March being a difficult month for cryptocurrencies, BNB has shown some strength in the face of the downturn. The coin has moved within a sideways pattern that posts heavy ups and downs, but after every fall, BNB has strongly rebounded above $500.

For instance, on September 6, it fell as low as $470 but later rebounded to trade at $520 at press time. This strength is also in line with the rising expectations of an altseason, as a decline in Bitcoin dominance tends to boost altcoins like BNB.

Investors are expecting that BNB might continue profiting from this trend in a way that it always has historically when stronger demand for alternative cryptocurrencies was triggered.

Recent on-chain data from Dune Analytics points to both promising and concerning trends in BNB. The number of active addresses on the Binance Smart Chain increased by 6% week-over-week, indicating that more people are interested in getting on the network.

However, this increase in active addresses did not translate into a similar uptick in transaction volumes, which declined 1.1% over the week, hinting that increased participation has not yet led to strong network activity.

The decline in network fees also reflects reduced activity, which may have an effect on the path that the BNB price may take. To be sure, high network usage has always seen relatively high demand for the BNB historically, and its prolonged depressed activity can cap the upside potential of the coin.

Despite the bearish sentiment and recent price swings, some analysts think BNB is set up for a run once altseason starts to heat up.

Usually, when Bitcoin dominance weakens that allows other assets to capture market attention and capital, which is where altcoins, especially BNB, tend to do well.

While the projection for a 25% gain in price by CoinCodex is the sort of thing that might suggest that BNB will continue to rise, the short-term prospects for the token remain uncertain.

While the coin did manage to post green days of 47% over the last month, the price volatility of 4.62% still showed risks. The bearish sentiment and market fear, along with mixed network activity, all imply prudence by investors in the immediate future.

BNB may very well persist with its resilience and probably grow even more. This crypto asset is one to keep an eye on. But with mixed signals in on-chain data and markets feeling their way cautiously, the risks involved should be considered first before investors dabble into the digital asset.

While a rally is most definitely possible, the market has not ended fluctuations just yet, and that short-term volatility may still be an issue.