BNB Price Gains 20%, Overtaking BTC, ETH as Binance Traders Brace for Fed Impact

BNB Price Analysis:

BNB price hit a 20-day peak of $561 on Sunday, Sept 15, outperforming the likes of Bitcoin, Ethereum and Solana over the weekend. On-chain data shows a spike in BNB trading volumes as traders anticipate the  trading boom across exchanges if US Fed cuts interest rates during the next FOMC meeting on Sept 18.

BNB Price Skips ahead of Market Average with 20% Gains

BNB price delivered a chart-topping performance over the last 10 days, beating the market average, by a considerable margin. The BNB price rally has been attributed to strategic traders aping in on the Binance native token.

On Binance, users holding the BNB token get up to 25% discount on trading fees, along with other valuable perks. Consequently, periods of intense trading activity often leads to accrued value for BNB holders.

If the US Fed cuts interest rates in the week ahead, as many analysts anticipate, there could be a major increase in trading activity across risk assets markets including crypto.

In an early indication of this narrative, since the US authorities published overheating CPI inflation figures on Sept 11, Gold (XAU) has reached an all-time highs above $2,500. Likewise, price of precious commodities like Oil (WTI) has also jumped by more than 5%.

Binance coin price action over the past week suggests that strategic traders are already front-running a similar spike in overall crypto market demand.

The chart above highlights Binance Coin (BNB) price action since Sept 6 when the US authorities first published dovish labor market data. In the 10 trading days between Sept 6 and sept Sept 15 BNB price rose by 19.28%, moving from $471, to hit a 20-day peak of $561 on Sunday.

More so, the likes of Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) recorded significant pullbacks over the weekend. Meanwhile, BNB price maintained the upward trajectory, closing the last 2 consecutive days above the $550 level, for the first time in over 20-days dating back to Aug 24 and 25.

At the time of writing around 8am GMT on Monday, Sept 15, BNB price has recorded a mild 2% retracement, to find steady support above the $545 area.

This supports that narrative shows that crypto traders’ piling disproportionate buying pressure on BNB ahead of the rate cut decision, inadvertently propelling prices.

BNB Open Interest Surges past $540M

BNB 19.28% gains over the past week has clearly outperformed the market average. However, recent trends observed in the BNB derivatives markets shows that many speculative traders have also been piling on fresh capital inflows, anticipating that the price uptrend could continue in the week ahead.

Coinglass’ Open Interest chart tracks the total value of capital stock currently invested in active BNB perpetual futures contracts for a particular crypto assets. It provided clear insights into traders’ sentiment around key market events.

The chart above shows total BNB open interest stood at $459 million around Sept 8. But as markets digested the dovish NFP and CPI inflation data, traders began to pile on new bets on BNB. After nearly a week on the rise, BNB open interest has not reached new monthly peak above $541 million as of Monday Sept 16.

This implies that crypto traders have invested an additional $82 million on BNB markets this within the past week, representing a 18% boost.

Historically, a simultaneous rise in both price and open interest often signals that new long positions are entering the market, reflecting increased confidence that the asset’s price will continue climbing.

With open interest at a monthly high and more capital flowing into the market in anticipation of a dovish Fed, BNB price is well-positioned for a potential breakout beyond its current monthly timeframe peak $561.

BNB Price Forecast: Potential $600 Breakout in the Week Ahead

BNB price has outperformed the crypto market average over the past week. While current gains are driven by speculative trading activity, a potential US Fed rate cut could validate this bullish conviction and trigger an accelerated breakout toward $600.

In terms’ of immediate price movements, the Chande Kroll Stop indicator is showing strong support around $542, signaling continued bullish momentum. As BNB consolidates above this level, it could attempt another leg up if the buying pressure holds.

However, the Linear Regression channel highlights key resistance levels near $560, where BNB has struggled to break through. If BNB clears this resistance, it could spark a rapid climb toward $600. A favorable US Fed rate cut could further validate the bullish conviction and lead to an accelerated breakout.

While the $542 level acts as short-term support, a break below could see a dip toward $491, the next strong support line. If buyers defend the $542 level, traders can expect the bullish trend to continue, with $600 as the next major target.