Binance Coin reached a record all-time high of $414.36 on April 6, 2021. Though the commodity was priced at $399.44 at the time of publication, retail traders remained optimistic on the altcoin, with the same now expecting a surge to the $500-level.
In the case of BNB as an altcoin, the market pattern is determined by factors other than price shifts in the previous 24 hours and week. It is, in particular, driven by market capitalisation and BNB’s contribution to crypto-market capitalisation. The commodity is reportedly overbought, according to the alt’s market chart and analysts on crypto-Twitter.
This, however, has had little impact on the market for spot exchanges. Furthermore, the $400 mark that BNB reached in the last two days has long been regarded as a psychologically significant level for the asset’s price on spot exchanges. Whale movement and focus by big HODLers have also played important roles in the BNB price rally.
According to the above table, even though the transfer count has decreased since 3 April 2021, it remains higher than the average of February and March 2021. If the transfer count holds above the average for the rest of the week, the market surge is expected to begin.
BNB’s price increase also indicates a change in the optimistic discourse around altcoins. The narrative has moved away from double-digit growth and fast exits and towards rising market capitalisation and capitalising on liquidity by HODLing and taking higher profits in tranches. This is evident from the cyclical and slow market recovery that has emerged from the price charts for the majority of altcoins this season.
Consider this – Even other top altcoin projects like DOGE and MKR may have an extended price rally on account of this changing narrative. In the case of DOGE, the trade volume has risen by over 39%, based on on-chain data from intotheblock. However, taking an estimate of the total transactions expected in April 2021 using this week’s number, it is short of the transactions in March 2021 by over 200k.
This means that, unless momentum is lost, the market surge will be continued over the next week. Given that the market was more than 25% off its ATH at the time of publication, it is likely that the price surge will proceed rather than consolidate.
Aside from the metrics that indicate a shift in pattern for Binance Coin and Dogecoin, the main metric for MKR is irregular purchasing behaviour. This increase in demand across exchanges seemed to indicate a bullish move in the altcoin’s price. Over 5 BTC worth of MKR was traded in less than 5 minutes on April 7, 2021.
To put this in context, the 24-hour trading volume of MKR was slightly more than 2,600 BTC. As a result, the 5 BTC transactions are important for MKR. Despite the fact that nearly 75% of HODLers were profitable at the time of publication, the prolonged rally could fuel a further rise in ROI and price in the short term. In reality, MKR is expected to rise as much as $2,400 in the coming weeks on the charts.
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