23.07.2025 19:30
BNB, the native cryptocurrency of the BNB Chain, achieved a new all-time high of $801 during early Asian trading on Wednesday, surpassing the $800 mark for the first time. This remarkable surge followed a strong 5% increase over the previous 24 hours and a substantial 13% gain throughout the preceding week, boosting BNB's market capitalization to over $110 billion and solidifying its position as the fifth-largest cryptocurrency by market capitalization.
The impressive price action is accompanied by a significant rise in trading volume. Data from Coinglass reveals a more than 40% increase in daily trading volume, exceeding $3 billion. Furthermore, derivatives volume experienced a dramatic 31% surge, reaching $2.18 billion, while open interest in BNB futures contracts climbed 19% to $1.23 billion. This heightened activity suggests substantial speculation and growing demand, potentially fueled by new capital entering the market and riding the wave of BNB's recent bullish momentum.
The token's upward trajectory, which has extended for several weeks, is reinforced by its breakout above previous highs, indicating sustained bullish sentiment among buyers. However, caution is warranted as the relative strength index (RSI) stands at 87.50, well within overbought territory. While an RSI above 70 often suggests an impending pullback, the current uptrend remains intact, with BNB significantly exceeding its 20-day simple moving average of $704. The combination of higher prices and substantial volume strongly confirms the strength of this trend.
Adding to the bullish narrative is significant institutional investment. On July 22nd, Nano Labs Ltd., a China-founded Web3 infrastructure company, announced a substantial purchase of 120,000 BNB tokens, valued at approximately $90 million, acquired over-the-counter at an average price of $707 per BNB. Nano Labs' declaration of BNB as a strategic reserve asset, coupled with their intention to further increase holdings and invest in BNB ecosystem companies, instills confidence among retail investors closely monitoring the token.
Despite the prevailing optimism, certain warning signals are emerging. BNB's current price is trading above the upper Bollinger Band, suggesting a potential overextension. This, along with the overbought RSI, indicates the possibility of a near-term correction. While the overall trend remains bullish, investors should exercise prudence and consider potential volatility. Information sourced from internet resources.
