On October 25, a rally started to build in favor of Binance Coin (BNB) as the investors started buying the crypto aggressively.
The rally continued from October 25 to October 31 and throughout the period, a weighted 23.7% growth rate was witnessed in BNB’s value.
BNB Rejected at $330
As the price of BNB continued rising, it was only a matter of time before it ended up surging closer to $330. The particular trading level was considered the strong resistance mark for BNB.
The bulls found it very difficult to push through the selling sentiments of the investors and finally, the bears prevailed.
They were able to reject BNB’s price close to or any higher than the $330 resistance. Therefore, the price of BNB has experienced a correction and has fallen lower in recent trading sessions.
It is worth mentioning that for a brief moment, BNB did cross the $330 level and went up to $337.80 but the reversion was instantaneous from the particular price.
Finally, the trading price of BNB ended up declining below the resistance line of $330.
The reason behind the Strong Rally
According to the analysts, the reason behind the strong rally in the price of BNB was the Binance exchange’s involvement in the recent Twitter deal.
Binance reportedly supported Elon Musk, the richest man in the world, to acquire Twitter. The exchange has backed Elon Musk with a $500 million contribution.
This has enabled Binance to play a key role in the acquisition of Twitter. It is a huge opportunity for Binance to gain a spot in the huge development of Twitter.
Other Metrics did not Support BNB
While the trading price of BNB experienced a significant surge, the decentralized application (DApp) metrics and the deposits for the network were not in the same direction.
In addition to supporting Twitter, Binance is also reported to be supporting Twitter in getting rid of the bots. This is also another major benefit for the exchange, which is ultimately helping BNB.
Year-to-Date Performance of BNB
The year-to-date performance analysis for BNB shows that it has experienced a 40% decline since the beginning of the year.
Despite the YTD decline experienced by BNB, its price dip has been less than its competitors such as Ether, Solana, and Polygon.
On a YTD basis, ETH’s decline is 59%, SOL’s decline is 82%, and MATIC’s decline is 79%.
Even in the recent trading sessions, BNB’s price has corrected by 6% after hitting a high trading price.
BNB to Experience a Stronger Push
Although the rally might have ended for BNB for now, it is expected to experience a rise in the upcoming days.
Binance has been getting ready to help Twitter to grow into a universal application, which is going to be a huge positive factor for BNB.
Analysts expect that Binance would play a huge role in Twitter’s further developments. This would eventually push BNB’s price significantly higher than it is at the moment.