BNB price eyes bullish breakout, open interest in Binance Coin is on the rise
- BNB price has climbed over 4% in the past week, despite legal challenges faced by Binance.
- Open interest in Binance Coin climbed 31% in the past month, indicating that new buyers are interested in BNB.
- BNB price rally past the $260 level could confirm a bullish breakout in the asset.
Binance’s native token Binance Coin (BNB) yielded over 7% weekly gains, the asset is likely to sustain its uptrend, according to on-chain metrics.
While Binance navigates legal challenges, following its $4.3 billion settlement, the exchange’s native token is in an uptrend. BNB is likely to emerge resilient to the regulatory developments against the exchange, posting consistent gains for holders.
Also read: XRP price sustains above $0.60 as Ripple roadmap prevents the SEC from circumventing securities law
BNB on-chain metrics support bullish outlook
Three on-chain metrics, Volume, Social Dominance and Open Interest in USD signal that BNB price gains are likely sustainable. BNB volume spikes correspond with local tops in the asset’s price, according to data from Santiment. Between November 12 and December 12, spikes in BNB volume have coincided with local tops in BNB price.
 [14.49.35, 12 Dec, 2023]-638379757726186927.png)
BNB Volume and price. Source: Santiment
Binance’s native token’s social dominance typically rises with increases in BNB price, as seen in the Santiment chart. This occurred on several occasions in the past six months. The social dominance of the asset is a key indicator of its relevance and adoption among market participants.
BNB’s social dominance is in an uptrend that started on December 5, 2023, as seen in the chart below.
 [14.52.28, 12 Dec, 2023]-638379758026416293.png)
Social dominance (BNB). Source: Santiment
Another key metric, Open Interest (OI), can be used to identify whether there is demand for an asset. This has been rising since November 12. In the past month, OI increased nearly 31% according to Santiment data and BNB price gains are likely supported by demand from new buyers in the market.
 [15.35.51, 12 Dec, 2023]-638379758305918318.png)
BNB Open Interest (USD). Source: Santiment
Analysts predict bullish breakout in BNB
Ali, a crypto analyst on social media platform X notes that a close above $260 could confirm a bullish breakout in Binance’s native token. Until BNB price breaks past this level, it is “wise to hold steady” according to the analyst.
Despite facing legal challenges, #Binance might emerge more resilient. Still, keep an eye on #BinanceCoin as $BNB forms a descending triangle on the weekly chart.
— Ali (@ali_charts) December 10, 2023
Watch for a close above $260 to confirm a bullish #BNB breakout. Until then, it might be wise to hold steady! pic.twitter.com/Wal9CDRfiP
At the time of writing, BNB price is $250.60 and the asset has rallied nearly 2% in the past 24 hours.
Binance to discontinue support for BUSD on December 15
Binance is set to discontinue support for Paxos’ stablecoin, branded as Binance USD (BUSD), from December 15, according to an announcement from the exchange. The issuer, Paxos, halted the minting of new BUSD tokens and stated that existing BUSD tokens are redeemable 1:1 till February 2024.
Binance urged its users to convert BUSD to other stablecoins or redeem them before the exchange pulls support. The move is Binance’s response to BUSD being labeled as a security by the US SEC in June 2023. In a lawsuit filed against Binance, the regulator labeled the stablecoin a security and Binance distanced itself from the stablecoin, eventually pulling support altogether for BUSD.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
