The Binance Coin price held steady in the overnight session.
The BNB is trading at $427, which is about 33% above the lowest level in September.
We explain why the price could soar to $500 soon.
The Binance Coin (BNB) price held steady in the overnight session as the cryptocurrencies and the Decentralized Finance (DeFi) industry rebounded. The BNB is trading at $427, which was slightly above this weeks low of $415.
Cryptocurrencies rebound
Binance Coin is the native token for the Binance Smart Chain (BSc) ecosystem. It is used to validate and verify transactions in the network. At the same time, it is widely used in the Binance ecosystem to handle transactions.
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The BNB price jumped in the overnight session as cryptocurrencies rebounded. Bitcoin jumped to almost $50,000 while Ethereum is approaching the $34,000 resistance level. In total, the market capitalization of most cryptocurrencies has jumped to more than $2.1 trillion, which is a few points below its highest level in September.
The Binance Coin price also rose as the DeFi industry bounced back. Data compiled by DeFi Llama shows that the total value locked in the industry rose to more than $196 billion in the overnight session. This was notable for an industry that was inexistent a few years ago.
The Binance Smart Chain ecosystem has the second-biggest market share in the DeFi industry. It has more than 100 apps that have a combined value locked of more than $17 billion. In contrast, Ethereum has more than 200 apps with a TVL of more than $135 billion.
The BSc ecosystem has some of the best-known DeFi platforms in the world like PancakeSwap, Venus, Tranchess, and Alpaca Finance. The BNB price often does well when these applications do well because it leads to more transactions.
Binance Coin price prediction
The fur-hour chart shows that the BNB price has been in a major bullish trend in the past few sessions. The price is trading at $427, which is about 33% above the lowest level in September. It is being supported by the 25-day and 50-day moving averages. At the same time, it has formed a bullish pennant pattern. The price is also along the highest level on September 15.
Therefore, the price will likely rebound in the near term. The next key resistance to watch is the psychological level of $500. This view will be invalidated if the token drops below the key support at $400.
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