- Weekly DEX volumes on BNB Chain surged to $17.74 billion, marking the highest level since December 2021.
- BNB was also trading in an ascending triangle pattern on its daily chart, which could support a breakout towards the 1.618 Fib level.
Binance Coin (BNB)the sixth-largest cryptocurrency with a market capitalization of $100 billion, had posted a 2% gain in 24 hours to trade at $697 at press time.
These gains reflect a slight recovery in the broader market.
BNB hit an all-time high of $793 in early December. Subsequent attempts to regain this level and possibly surpass $800 were met with strong resistance at $722.
However, increased DeFi activity could contribute to this near-term breakout.
DEX Volumes Climb to $17.74 Billion
Data from DeFiLlama showed that weekly DEX volumes on BNB Chain jumped to $17.74 billion, marking the highest level in three years.
Source: DeFiLlama
The two protocols driving this growth are PancakeSwap and THENA, which saw a 298% and 111% increase in weekly volumes, respectively.
This increase could bode well for BNB, which is the native token of the blockchain. As more people rely on the network for DEX transactions, this could increase demand for BNB and support higher prices.
Besides this bullish look at BNB Chain, the token’s daily chart showed bullish trends that could also contribute to a breakout beyond $800.
Analyzing BNB’s Ascending Triangle Pattern
BNB was trading in an ascending triangle pattern on its daily chart, suggesting that the bulls were in control. The upper trendline of the pattern sits at $722.
If BNB breaks this level, it could lead to a sustained uptrend.
Source: TradingView
The Relative Strength Index (RSI) had swung north and crossed the 50 mark, indicating that buyers were re-entering the market. An increase in buying pressure could support a breakout to the 1.618 Fibonacci level ($823).
However, traders should be wary of bearish trends illustrated by the red bars of the Awesome Oscillator (AO).
If the bears regain control and price falls below support at the lower trendline of the ascending triangle, it could invalidate the bullish thesis.
Is BNB headed for a short squeeze?
The BNB liquidation heatmap with a 24-hour lookback period showed a large group of liquidations surpassing the current price.
If BNB rises above 706 and triggers these liquidations, a short squeeze would ensue, forcing short sellers to buy and close their positions. This action could fuel an uptrend.
Source: Coinglass
Read Binance Coin (BNB) Price Prediction 2025-2026
Additionally, there is another liquidation level below the price of $678. If BNB falls below the lower trendline of the ascending triangle and drops to that price, the resulting long liquidations will push the price lower.
Therefore, traders should pay attention to critical support at the 0.5 Fibonacci level ($681), as a breakout from this level could strengthen the bearish scenario.
