BNB price hovered around $720 on Monday, down from its all-time high of $794 on Dec. 4, giving it a market capitalization of more than $100 billion. Binance handled 36% of global crypto market trading volume, or $986 billion, in November as the market rebounded following Trump's reelection. Binance has further reduced trading volume in December by $350 billion so far, and BNB price volatility has increased sharply.
BNB hit a record high of $794 on Dec. 4, passing the $100 billion market cap milestone before consolidating around $720 on Monday. Trends in market activity suggest that BNB could be on the verge of another big breakout in the coming weeks.
Trump's re-election sparks market frenzy, pushing BNB price to all-time high
BNB, the native coin of Binance, the world's largest cryptocurrency exchange, has been on a steady upward trend in price over the past 30 days.
This increase can be attributed to the re-election of Donald Trump in the US presidential election, as well as crypto-friendly policy proposals and Cabinet nominations, which sparked a trading frenzy across the global crypto market.
Monthly trading volume of virtual currency exchanges | Source: The Block
Following President Trump's reelection, global cryptocurrency market trading volume reached $2.71 trillion in November, the highest monthly trading volume since 2021.
According to aggregate data culled from TheBlock, Binance gained 36% of the traction and the total trade value executed on the exchange last month was worth $986 billion.
Since its launch in July 2017, BNB price has been positively correlated with trading activity on the Binance exchange, as users who hold the token receive up to 25% fee discounts.
Therefore, a spike in trading volume on an exchange often causes an increase in demand for BNB, which in turn drives up the price.
BNB Price Action | BNBUSDT (Binance)
This bullish phenomenon has resurfaced in the past month, as President Trump's victory on November 5 sparked a surge in demand for cryptocurrencies around the world.
To verify this story, the chart above shows BNB price rising 46% from $543 on November 4th to an all-time high of $794 on December 4th, and 8.6% towards the $720 level on Monday. It shows how it is reversed.
Rapid increase in BNB market volatility is a sign of further upside
After failing to break out of the $800 resistance level, BNB has corrected 8.7% over the past five days. Nevertheless, Binance's surging trading volume and rising price volatility suggest it could rise again in the coming weeks.
According to TheBlock, Binance recorded $350 billion in trading volume in the first nine days of December, putting it on track to surpass November's milestone of $986 billion.
This increase in activity often correlates with increased speculative interest and can drive rapid price movements.
BNB Price Volatility (4w) |Source: Santiment
Santiment's data on BNB price movements over a four-week period lends credence to this bullish outlook.
As seen above, BNB's four-week volatility jumped from 0.36 on December 3rd to 0.67 by Monday, an 89% jump.
Historically, increased volatility during price corrections often precedes significant price rebounds as market participants reposition their trades.
If volatility continues to rise along with Binance trading volume, BNB bulls could attempt another major price breakout in the coming weeks.
BNB price prediction: $800 breakout expected if $675 support holds
BNB’s price movement reflects a bullish outlook supported by Binance’s increasing trading volume.
From a technical perspective, Bollinger Bands, Parabolic SAR, and Bull Bear Power (BBP) also support the positive prediction for BNB price, with the major resistance level looming well above $800, and the $675 level an important support. functions as
As shown below, the Bollinger Bands are showing a narrowing range, suggesting that BNB is consolidating ahead of a potential breakout.
Price is hovering near the upper band, indicating increasing bullish momentum. This is consistent with Parabolic SAR's recent trend below candlesticks, further supporting its upward trajectory.
BNB Price Prediction | BNBUSDT
On the other hand, the BBP indicator shows positive values, indicating increasing buyer strength.
If BBP remains positive, BNB could be propelled towards a breakout above $800, with $850 being the next major target.
Conversely, a break below the key support zone at $675 could invalidate the bullish outlook.
