BNB’s Current Market Position
Binance Coin (BNB) has dropped from its all-time high (ATH) on the charts. What does this mean for its short-term outlook? After retesting a key support level at $593, metrics seem to point to a potential price surge for BNB.
Recent Price Movements
BNB’s price was consolidating in a symmetrical triangle after 31 March, before breaking out on 24 May. The price then surged by 22.44% to hit its all-time high, before a pullback to retest the $593-support level. Due to this pullback, it’s worth analyzing when bullish momentum is likely to return to the altcoin’s market.
At the time of writing, BNB was valued at over $608, down almost 15% from its latest ATH.
Support Levels and Market Cap
With BNB’s market cap just short of its peak at under $90 billion, the altcoin’s charts revealed that the 50-day and 100-day exponential moving averages stood around the $607.5 and $563.2 support levels, respectively. It’s important to look at the altcoin’s charts with caution. With BNB trading above its support levels, indicators could be key.
Technical Indicators
The Stochastic RSI had a reading of 6.10, indicating that BNB may be in an oversold zone, vulnerable to a likely price reversal before any major price hikes.
Whale Activity and Social Volume
AMBCrypto’s analysis of whale activity on Santiment revealed a positive ascending trend on the charts. The percentage of stablecoins held by whales with more than $5 million has been increasing steadily, suggesting that large investors are positioning themselves for a potential bullish rally.
Additionally, BNB’s social volume has risen significantly, correlating with the market’s interests. The correlation between rising social mentions and price movements emphasizes the market’s bullish bias. A greater number of mentions usually precedes significant price actions, either positive or negative.
Long/Short Ratio Data
AMBCrypto further analyzed the long/short ratio data from Coinglass, which recently recorded several bullish spikes. This indicates that long positions are winning the battle against short positions.
Conclusion
BNB’s price is at a key point right now. On the back of accumulating bullish momentum, reinforced by increasing social volumes and ascending whale activity, Binance Coin may be on the verge of surging to higher price levels.
However, if BNB builds enough bearish pressure and closes below the resistance zone, a price drop might be imminent.
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