Binance Coin’s price action is at a crucial stage right now. In fact, it is likely to provide a buying opportunity before it triggers a 33% ascent. While technicals present a bullish opportunity, on-chain metrics back up the claim and suggest that the bulls are back in control of BNB.
What do the technicals say?
Binance Coin’s price, like many altcoins, seems to be stuck in a range, extending from $336 to $448. The latest Bitcoin crash affected all altcoins and Binance Coin has tagged the range low as a result.
Since the range has held up, there is a good chance that the price will pull a 180 and make its way back to the range high. Interestingly, both the range high and low contain double bottoms, resting below which is the liquidity pool.
Due to the recent downswing, BNB arrived close to sweeping below the range low at $336 to collect the sell-stop liquidity. Alas, it failed to do so. Hence, there is a good chance Binance Coin could quickly reverse its trend and go lower in search of liquidity before establishing an uptrend.
From $336, Binance Coin’s price is likely to head to the range high of $448 and collect the buy-stop liquidity resting above it. In doing so, it will complete the 33% climb.
On-chain metrics say Aye
The 1-hour active addresses for Binance Coin have spiked from 673 to 1,469 in the last 48 hours, signalling massive interest from investors. While this spike might be short-lived, it does indicate potential buy-side pressure.
Therefore, the 118.3% uptick in active addresses is a sign that these investors expect Binance Coin’s price to rally in the mid-to-long term scenario. This aligns perfectly well with the market’s technical outlook.
Source: Santiment
Perhaps, the most significant metric that denotes bullishness for BNB is the on-chain volume. The same has recorded a bump from 1.17 billion BNB to 2.13 billion BNB. While this uptick indicates the appetite of investors interacting with the Binance Coin blockchain, it also corresponded with a price drop, revealing a bullish divergence.
This development is important since a price spike is often preceded by a bump in volume. Adding credence to this metric is that the recent bump in on-chain volume surpassed both the weekly and monthly moving averages while revealing a bullish crossover between the two.
All in all, the on-chain metrics are implying that BNB’s price is ready for a quick run-up.
Source: Santiment
This optimistic scenario could turn sour if Binance Coin’s price produces a six-hour candlestick close below $336. This will invalidate the bullish thesis. In a dire case, BNB could explore lower to collect liquidity.