Since March, the price of BNB, formerly also known as Binance Coin, has barely dipped below $500 despite the broader cryptocurrency market slump. Following ponderous losses across major cryptocurrencies, BNB has shown impressive resilience to the price decline, supported by forceful demand.

Despite this strength, the latest BNB Price Forecast CoinCodex still estimates that the coin could surge 25% and reach $650 by October 10, 2024. Meanwhile, investor sentiment is bearish, and the fear and greed index is also at 33, reflecting the uncertainty in the market.

This mixed outlook raises questions about BNB’s near-term trajectory. While there is room for growth in the long term, short-term conservatism is warranted, especially given the coin’s recent volatility and broader market dynamics.

BNB Sideways Movement and Sturdy Demand

Since March, BNB has been moving in a sideways pattern, with enormous increases and decreases. However, after each decrease, BNB has bounced strongly above $500, meaning there is a high demand for the coin. For example, on September 6, it fell to $470, but later rebounded and at the time of going to press, it reached a price of $520.

This also aligns with rising expectations for altseason, as Bitcoin’s decline in dominance tends to boost altcoins like BNB. Investors seem confident that BNB can continue to profit from this trend in a way that it historically has when stronger demand for altcoins has been generated.

Data on the Chain: Network Activity and Demand

Last data in the chain from Dune Analytics points to some promising and worrying trends in BNB. The number of busy addresses on Binance Intelligent Chain increased by 6% week-on-week, indicating that more people are interested in joining the network.

However, the escalate in the number of busy addresses did not translate into a similar escalate in transaction volume, which fell by 1.1% over the week, suggesting that the increased participation has not yet translated into forceful network activity.

The drop in network fees also reflects reduced activity, which could impact the path BNB’s price could take. Of course, high network usage has historically always been associated with relatively high demand for BNB, and its prolonged low activity could limit the coin’s growth potential.

Is there a rally coming up?

Some analysts believe this could be set for a run, despite bearish sentiment and recent price volatility, especially as altcoin season begins to heat up. Typically, when Bitcoin’s dominance wanes, it allows other assets to grab market attention and capital, and this is where altcoins, especially BNB, tend to do well.

While CoinCodex’s forecast of a 25 percent price escalate may suggest that BNB will continue to appreciate in value, the short-term outlook for the token remains uncertain.

Although the coin managed to record 47% green days over the past month, the price volatility of 4.62% still indicated risk. bearish sentiment and market concerns and ambiguous network activity mean investors should exercise caution in the near future.

BNB could very well maintain its resilience and possibly rise even higher. This crypto asset is one to watch. However, with mixed signals in on-chain data and markets cautiously moving in their direction, the risks involved should be considered first before investors start experimenting with the digital asset.

While a rebound is certainly possible, the market is not yet finished with its swings and short-term volatility could still be an issue.

Featured image from Zipmex, chart from TradingView