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BNB Sees 9.8% Spike in Daily Active Addresses, Price Reacts: Crypto Market Review, Dec. 19

Mon, 12/19/2022 - 23:50
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Arman Shirinyan
BNB is in solid recovery rally and showing strong results compared to anemic cryptocurrency market
BNB Sees 9.8% Spike in Daily Active Addresses, Price Reacts: Crypto Market Review, Dec. 19
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BNB has held the spotlight of the cryptocurrency market for the last few weeks as the transactional activity on Binance cryptocurrency exchange and products based on BNB have been at one of the highest levels throughout the year. As the FUD around the exchange ended, the price of BNB rushed upward, leaving some bears in losses.

BNB's swift bounce

In the last two days, BNB has gained more than 11% to its value, showing a well above average performance on the market since the majority of cryptocurrencies have been rapidly losing their value in comparison to Binance's underlying cryptocurrency.

BNB chart
Source: TradingView

After the spike upward, BNB hit a relatively insignificant sell wall, facing a healthy 2.5% correction at the local top. According to on-chain data, the activity of the network is still on a solid rise, with a 9% increase in the last few hours.

Additionally, we are seeing an increase in the average fee on the network, which could be considered a long-term signal for growth as more validators might join the network to ensure its stability and participate in its governance.

Following indicators like volume profiles and moving averages are not yet giving any distinctive signals. The lack of direction might not be a good sign for investors, as it limits capital inflows to assets due to the short-term trend's indecisiveness.

Dogecoin's reversal

The massive 120% price pump we witnessed on Dogecoin in the last month has turned to dust as the meme coin returned to the price level we saw before the Twitter takeover. The descending volume profile we highlighted in our previous reviews has been the main signal for a price reversal.

The lack of trading volume on the asset causes an outflow of funds that support local rallies and act as fuel for each move of the asset. As the holder distribution suggests, most Dogecoin investors are short-term holders who got their assets during the rally or even after the meme assets reached the local top.

Dogecoin (DOGE) in Red as Musk Asks Users If He Should Step Down as Head of Twitter

At press time, Dogecoin is trading at the $0.07 price level, which correlates with the support level that has not yet been broken after two tests that happened back in November. In case of a volume recovery, the expected outcome would be the bounce at the current price, which, however, is a relatively complicated task that might not turn into reality with the current state of the market and Dogecoin specifically.

Generally, the cryptocurrency market is in a stalemate state, and assets are not rallying or facing excessive pressure from investors. Both high and low caps are losing insignificant portions of their value in the last 24 hours, but due to the lack of volume and volatility on the market, we are unlikely to see any noteworthy moves on the market until the end of the year.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.