he price of BNB jumped to $561 for a surge of 20% on September 15, 2024. It now leads the way compared to other major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
This increase is largely because of increasing market anticipation with the upcoming US Federal Reserve meeting, while also noting the probable release from prison of former Binance CEO Changpeng Zhao (CZ) on September 29.
Performance of the Price of BNB
BNB has been outperforming the broader market of late. The price rose from $471 to $561 in ten days, reflecting recoveries. Trading volumes for BNB also increased as speculative traders positioned for further gains in its price.
This price increase happens when open interest has risen to over $531 million as of September 16, reflecting increased activity and trader confidence.
Interest in risk assets, which include cryptocurrencies, has further been driven by the anticipated US Fed meeting set to take place on September 18. Many analysts are of the view that a decision by the Fed to cut interest rates could trigger heavy trading activity across the crypto markets. The effect could be more upward momentum for BNB as traders position themselves ahead of the announcement.
CZ's Impact on Market Sentiment
The pending release of CZ has also played a major role in setting the market tone. CZ is the founder of Binance and was sentenced to jail earlier this year. As such, his return is likely to bring along renewed interest in the Binance platform and associated tokens.
This could be one potential catalyst to push the price even higher-perhaps up to $600 or more for BNB, according to analysts. Market analyst CryptoGodJohn pointed out that CZ's return could be one of the easiest opportunities for traders. He further added that if bullish momentum can be sustained, a price over $600 could be achieved.
The way BNB has been trending so far, once the price breaks above the resistance line at $575, it could shoot further up toward the next targets of $631 and even $724.
Future Price Predictions
Looking ahead, the price of BNB has reached a critical juncture. The moving average of a 20-day EMA suggests that a close above $520 may lead to further gains. It also faces resistance at $575, which might be difficult to overcome. If BNB keeps going upwards and breaks above this resistance, the price could reach new highs.
On the other hand, if market conditions turn unfavorable or if the legal woes affect Binance's return, then BNB may break downwards. Analysts think that a failure to stay above the support line at $542 may force it to retreat to $491. At the time of writing, BNB is trading around $540 surging 7.96% from the past 7 days.
In other words, the recent price increase in BNB was based on a commixture of market expectations of the US Fed meeting and the expected return of CZ. Although traders remain optimistic, the next couple of weeks will be crucial for the performance of BNB in the crypto market.
