I am Old Zhao, I have been in the crypto space for eight years and have seen too many times when good news comes out, and retail investors get cut down. But this time, the BNB market is really different. To get straight to the point:
One, money and trends are flowing towards the BNB chain.
In the past week, over 1 billion USD has flowed from Ethereum and other public chains to the BNB chain, directly making the BNB chain the top for capital inflow. Why? Low transaction fees, fast trading speed, and retail investors along with arbitrage institutions are flocking here. Last year, the SOL chain also surged due to this logic, but BNB has the support of the big platform Binance, making it more solid.
How does the technical aspect look?
The current price is stuck around 660 USD, with the MACD indicator showing that the upward momentum is still there, and the trading volume has increased, indicating more buyers. However, 686 USD is a hurdle; it has been blocked here during three rebounds last year, and we can only look above 700 USD if it breaks through.
Old Zhao added to his position at 658 USD in the morning, setting a stop loss at 650 USD. Why? When funds are pouring in, a price pullback to the 5-day moving average is like free money; don’t wait until it rises and then regret.
Two, the ecosystem is booming, and both retail investors and project teams are working hard.
The BNB chain now has nearly 2 million active users daily, and its trading volume has increased by 243% in a month! PancakeSwap can transact 3.3 billion USD in a day, which is even more impressive than Ethereum's Uniswap. Retail investors are actively trading meme coins on the BNB chain, like various dog-themed projects, creating a lively atmosphere. Binance has also put in 100 million USD in subsidies for DeFi and GameFi projects, clearly aiming to boost the hype with money.
A real example: In May, a dog-themed coin called $FART was launched on the BNB chain, and it increased 100 times in just three days. Although it eventually went to zero, the transaction fees paid by everyone trading it directly supported the demand for BNB. The more active the ecosystem, the more valuable BNB becomes; this is an iron law of the crypto market.
Three, two deadly hidden dangers; don't act like you can't see them.
Development has become lazy.Code updates in January were down 67% compared to before, marking a new low in nearly six months.
Risk points.If the project team only relies on speculating on coins without making technical updates, it will eventually fail. Refer to the collapse of EOS in 2023; the developers running away was a precursor.The regulatory sword is still hanging: Although Binance's former CEO has stepped back, the 4 billion USD fine in the U.S. is still unresolved. If Binance is sanctioned again, the price of BNB will surely plummet.
Four, should we buy now or wait?
Short term: If it breaks 686 USD, chase the rise, targeting 700-720 USD; if it falls below 650 USD, stop loss, and wait to buy back around 612 USD.
Long term: Funds flowing in here + an increasingly active ecosystem is a hard truth; every major dip is a good opportunity to accumulate coins; don’t be scared away by short-term fluctuations.
Furthermore, if the UAE really issues golden visas to those staking BNB, how high do you think the coin price could go? Let’s discuss in the comments!
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