Within the last 24 hours, Binance Coin (BNB) has witnessed a significant surge in price, reaching $505 at the current moment.
Despite this daily surge, BNB has experienced a slight decrease of 2.74% over the past week according to the most recent data from CoinMarketCap. The coin’s market capitalization now stands at $73.47 billion, showing a 2.02% increase. However, its trading volume has dropped by 27.29% to $1.33 billion in the past day.
The existing support level for BNB is approximately $462.6, a level that has historically proven to be crucial, acting as a strong support zone during various market corrections and preventing further downtrends.
Currently, BNB is trading above this important support level, with bullish momentum picking up pace and setting sights on the $555.4 level.
Nevertheless, a dip below this level could lead to increased selling pressure and potentially result in further market downturns.
Source: Tradingview
Steady Hold of BNB Whales
Since July 15th, there has been a steady increase in whale activity with wallets holding more than $5 million, accounting for 54% of the total supply.
This stable whale activity suggests that large holders are maintaining their positions, showcasing confidence in the current market conditions.
Accumulation by whales at this level might offer price support, indicating a reduced likelihood of major sell-offs, thereby hinting at potential stability in the near future.
Surge in BNB Development Activity
Additionally, there has been a notable increase in development activity surrounding BNB, as per Santiment data.
This spike in development activity is a positive indicator, as heightened development efforts usually translate to increased investor confidence and positive long-term growth prospects.
Source: Santiment
Bullish Momentum Indicated by Stochastic RSI
The Stochastic RSI is signaling a minor bullish crossover, implying potential upward momentum in the short run.
Typically, such crossovers often precede forthcoming rallies, especially when paired with Binance coin holding above crucial support levels.
Furthermore, the present chart pattern suggests a consolidation phase following a robust upward trend.
This scenario suggests a possible breakout in the near future, particularly with continued support from whale accumulation and development activity.
If the bullish momentum for BNB persists above the $462.6 support level, there is a chance for the price to surge towards retesting resistance levels of $555.4 and eventually aiming for $634.1 in the upcoming quarters.