• Binance Coin: Hold off on making any moves until this happens

  • On the surface, Binance Coin’s slow march towards $400 appeared sideways and monotonous. However, one thing that stood out was BNB’s sustained recovery since July 22. The coin had fallen below the $250 mark, and its recovery from the lower lows is unquestionably welcome. With BNB hovering near $350 at press time, the chances of it rallying up to $400 appear to be improving.

    Price action appears to be bullish, but is it?

    Binance Coin was worth $350.91 at the time of writing. While the one-hour chart appeared to have a lot more volatility, the one-day chart appeared to be much calmer. BNB has increased in price by 4.89 percent in the last 24 hours and 9.98 percent in the last week. These hikes may appear appealing at first glance. The fact that trade volumes did not show a significant increase was, however, indicative of low activity despite high gains.

    The alt had major support at $310 and resistance at $365, both of which needed to be broken for a solid rally above $400. Notably, BNB has been registering higher lows since mid-May, which has pulled the asset out of its downward trend. Furthermore, the asset was entering the overbought zone for the first time since May.

    The asset was already trading above the 50 and 200 week simple moving averages. Going forward, it needed to break through the 100-week simple moving average (SMA) before this upward trend could be called a rally. Surprisingly, the 100-week simple moving average is just above $375.

    If this asset crosses this level, the road to a rally could be much smoother. Furthermore, at the time of writing, the price was in a bullish momentum at the resistance zone, which could facilitate the move even further.

    Will the BNB rally continue?

    Binance Coin’s value has increased by approximately 730 percent year to date. These gains were the highest of any major altcoin, trailing only Dogecoin. This, combined with the stock’s sustained rally, could signal a buy signal. There are, however, a few issues that must be addressed.

    For starters, the fact that Binance is gradually removing BNB supply from the market via their burn protocol positions BNB as a scarce asset class. That being said, while the excitement surrounding the 16th quarterly BNB burn, which occurred on July 18, was palpable, there was no price impact. However, it should be noted that such phenomena typically have a longer-term impact rather than a short-term one.

    Second, BNB’s social sentiment was at an all-time high, even as its price rose. Binance coin’s social volumes have been increasing since the end of July, with massive spikes on multiple days. Even its weighted social sentiment peaked on August 7, indicating that the alt was getting a lot of attention.

    On August 4, development activity for BNB saw an unexpected spike. Until the time of writing, the situation remained consistent. Similarly, the MVRV ratio (30day) reached an all-time high, which was last seen on May 9. Overall, most metrics painted a positive picture of the alt. However, due to the lower number of daily active addresses, activity was low.

    With moderate daily active addresses and declining volume bars on the chart, BNB may experience some additional volatility in the upcoming trading session. Despite all of the bullish signals, it would be prudent to hold off on making a move.

    What's your reaction?
    Happy0
    Lol0
    Wow0
    Wtf0
    Sad0
    Angry0
    Rip0