Binance Coin hit a new ATH on April 6, 2021 at a price of $ 414.36. While the asset was trading at $ 399.44 at press time, retailers remain bullish on the altcoin, with the same now anticipating a rally to the $ 500 level.
With BNB as an altcoin, the price development is influenced more than just by price changes in the last 24 hours and in the past week. In fact, it is influenced by market capitalization and the BNB’s contribution to crypto market capitalization. Based on the Alt’s price chart and analysts on Crypto-Twitter, the asset is currently overbought.
However, this does not affect the demand on spot exchanges. In addition, the $ 400 level that the BNB has exceeded in the past two days has long been viewed as a psychologically important level for the price of the asset on cash exchanges. The whale movement and the concentration of large HODLers also played a crucial role in the expanded price rally for BNB.
Based on the graph above, although the number of transfers has decreased since April 3, 2021, it is still above the average of February and March 2021. If the number of transfers stays above average for the rest of the week, it is likely that the price rally could continue.
The BNB price rally also signals a shift in the bullish narrative of altcoins. The narrative has shifted from double-digit profits and quick exits to increasing market capitalization and leveraging liquidity through HODLing and taking higher profits in tranches. This is evident from the cyclical and gradual price recovery for most altcoins that has emerged from the price charts this season.
Keep this in mind: Even other top altcoin projects like DOGE and MKR may see a prolonged price rally due to this changing narrative. In the case of DOGE, trading volume has increased by over 39% due to on-chain data from intotheblock. However, if you use this week’s number to estimate the total number of transactions expected in April 2021, the number of transactions in March 2021 is more than 200,000.
This suggests that the price rally can be extended into the following week provided there is no loss of momentum. With price more than 25% off its ATH at the time of going to press, it is likely that the price rally will continue instead of consolidating.
Apart from the metrics that signal a trend change for Binance Coin and Dogecoin, in the case of MKR the key metric is the unusual buying activity. This surge in demand across the exchanges seemed to signal a bullish shift in altcoin price. On April 7, 2021, MKR worth over 5 BTC was sold in less than 5 minutes.
To put this in perspective, MKR’s 24-hour trading volume was just over 2,600 BTC. This makes the 5 BTC transactions meaningful to MKR. Although almost 75% of the HODLers were profitable at the price level of the print time, the prolonged rally could lead to a further increase in ROI and price in the short term. In fact, MKR is expected to climb as much as $ 2,400 on the charts in the weeks that follow.
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