BNB price hints at rally, sizing the bullish outlook of on-chain metrics
- BNB noted a spike in its development activity, social metrics and open interest over the past three months.
- Binance’s native token’s price is likely to rally alongside DeFi, Layer-1 blockchain tokens and altcoins in the ongoing cycle.
- BNB price witnessed a bullish trend reversal in the last week of October, rallying towards $255 local top in November.
BNB, the native token of Binance, is likely to extend its gains as on-chain metrics project a bullish outlook on the asset. Three key metrics, development activity, social dominance and open interest point towards a potential rally in BNB price.
Another key catalyst for the BNB ecosystem is Binance’s Blockchain Week 2023, a two-day conference that runs from November 8 to 9 in Istanbul. It is the Turkish edition of a Web3 conference where crypto adoption is discussed by experts and policymakers.
Also read: Bitcoin price trends above $35,000 after BTC survives sell off by miners
BNB price rally likely on the horizon: On-chain analysis
Development activity, an indicator that identifies updates in the asset’s ecosystem, climbed from 0.017 in the second week of August to 0.17 as of November 8. Rising development activity supports improvements in the blockchain and is likely to fuel a bullish outlook among traders.
 [16.55.40, 08 Nov, 2023]-638350459334486222.png)
Development activity
Social metrics, social dominance and volume are generated by evaluating the mentions of BNB across social media platforms like X (formerly Twitter). An increase in social metrics typically supports a bullish thesis for the asset’s price. As seen in the Santiment chart below, in the past three months, social dominance peaks have coincided with local tops in BNB price, as seen on August 23, October 10, October 27, November 7, 2023. Therefore, it is likely that the rise in social dominance pushes BNB closer to a local top in the short term. Social volume is nearly the same as August, with periods of peaks coinciding with social dominance, as seen in the chart below.
 [16.54.49, 08 Nov, 2023]-638350459630879900.png)
Social dominance and volume
Open interest in BNB spiked between Nov 3 and 7, the metric has been in a downtrend for the past three months. Rise in open interest is indicative of increasing capital inflow to the asset. This metric therefore supports a bullish outlook on BNB price.
 [16.51.06, 08 Nov, 2023]-638350459936497477.png)
Open interest in USD
At the time of writing, BNB price is $245.60, up nearly 9% since the beginning of November.
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.
