- Weekly live trading volumes on BNB Chain rose to $17.74 billion, the highest level since December 2021.
- BNB is also trading within an ascending triangle pattern on the daily chart, which could support a breakout towards the 1.618 Fibonacci level.
Binance coin [BNB]The sixth-largest cryptocurrency with a market cap of $100 billion posted a 2% gain in 24 hours to trade at $697 at press time.
These gains reflected a slight rebound in the broader market.
BNB token set an all-time high of $793 in early December. Subsequent attempts to regain this level and perhaps surpass the $800 level were met with strong resistance at $722.
However, a rise in DeFi activity could help this breakout in the near term.
Live trading volumes rose to $17.74 billion
Data from DeFiLlama It showed that weekly live trading volumes on the BNB chain rose to $17.74 billion, the highest level in three years.
Source: Devilama
The two protocols driving this growth are PancakeSwap and THENA, which saw a 298% and 111% increase, respectively, in their weekly volumes.
This rise could bode well for BNB, the blockchain’s native token. As more people rely on the network to make DEX transactions, this could increase demand for BNB and support higher prices.
Along with this bullish outlook on the BNB chain, the daily chart of the token showed bullish trends that could also help it break above the $800 level.
Analysis of the ascending triangle pattern for BNB
BNB was trading within an ascending triangle pattern on the daily chart, indicating that the bulls were in control. The upper trend line of the pattern is located at $722.
If BNB breaks this level, it could lead to a continued uptrend.
Source: Trading View
The Relative Strength Index (RSI) headed north and crossed the 50 mark, indicating that buyers were entering the market again. A rise in buying pressure could support a breakout to the 1.618 Fibonacci level ($823).
However, traders need to beware of downtrends shown by the red Awesome Oscillator (AO) bars.
If the bears regain control and the price falls below support at the lower trend line of the ascending triangle, this could invalidate the bullish thesis.
Is BNB heading towards a short squeeze?
The liquidation heatmap of BNB with a 24-hour lookback period showed a large group of liquidations looming above the current price.
If the price of BNB rises beyond 706 and triggers these liquidations, a short squeeze will ensue, forcing short sellers to buy and close their positions. This action could fuel an uptrend.
Source: Coinglas
Read Binance Coin [BNB] Price forecasts 2025-2026
In addition, there is another liquidation level below the price at $678. If BNB falls below the lower trend line of the ascending triangle and drops to this price, the resulting long liquidations will send the price lower.
Therefore, traders should watch out for a crucial support at the 0.5 Fibonacci level ($681) as a breach of this level may strengthen the bearish case.
