Binance Coin (BNB) remains among the leading cryptocurrencies, with its parent company, the Binance exchange, holding a dominant position in the digital asset market.
With the recent apprehension of its co-founder CZ, the market performance of BNB necessitates a thorough examination of its technical and on-chain analysis.
Recent reports from Hyblock Capital suggest a “short imbalance” for Binance Coin, indicating a bearish sentiment and potential downward price pressure due to more traders betting against BNB.
As long positions decrease, investors seem to anticipate a further decline in BNB’s value.
BNB’s Consolidation in an Ascending Triangle
Despite the prevailing sentiment, the BNB/USDT pair chart paints a more optimistic picture.
The price action of BNB displays bullish indicators, particularly on the weekly chart, showcasing a consistent uptrend since the beginning of 2021, marked by higher highs and higher lows.
The presence of an ascending triangle pattern, with $450 acting as crucial support, hints at a potential upward trajectory for BNB.
The ongoing consolidation within this pattern presents an opportunity for a breakout to the upside, although caution is advised for traders as the price approaches its all-time highs.
The juxtaposition of the bullish chart and the bearish long-short delta emphasizes a mixed sentiment but suggests that BNB’s price might still climb higher.
Altcoins Showing Uptrend on Daily Charts
With altcoins beginning to show positive movement on daily charts, BNB stands to benefit from this upward trend. The broader altcoin market’s recovery signals a potential price uptick for BNB.
The recent breakout from a falling wedge pattern spanning nine months in the altcoin markets indicates a possible surge, with BNB likely to follow suit.
The collective rally among altcoins, alongside improvements in market conditions, could propel BNB’s price upwards in the upcoming weeks or months.
Duration of Coin Holding Time
On-chain metrics further support the notion that BNB might be undergoing a short-term correction with the potential for a rebound.
The duration for which transacted coins, specifically Binance USD (BUSD) on the BNB Chain, have been held has been increasing since the beginning of 2024, suggesting that investors are maintaining their assets for a longer period and showing confidence in BNB’s future price prospects.
Crowd vs Smart Money Sentiment Analysis
Sentiment analysis reveals that both retail investors and institutional “smart money” are optimistic about BNB’s future.
This positive sentiment contrasts with the earlier noted short imbalance, offering additional indications that BNB might witness an increase in prices soon.
Moreover, the rapid adoption of the BNB Chain, particularly with the emergence of meme coins on its network, is on the rise.
With macroeconomic factors aligning and the potential for Bitcoin to lead a broader market recovery, BNB could be on the brink of a significant price surge.