- BNB dips 20% but shows bullish signs with strong long-term holder confidence.
- Key metrics indicate accumulation, suggesting a potential rebound for Binance Coin.
- New buyers enter while long-term holders stay firm, signaling market strength.
Binance Coin — BNB, has caught the attention of investors. The token reached $788 on December 4, 2024, marking an all-time high. Since then, the price has dropped about 20%. Bitcoin has also declined, losing 22% from the peak of $108.7K. Despite the dip, 85.8% of BNB holders remain in profit. The 7-day moving average has stayed above 75% since February 2024. These signs suggest a period of distribution. A potential breakout could be on the horizon.
Key Metrics Indicate Strength in Binance Coin
Several technical indicators point to possible accumulation. The coin days destroyed (CDD) metric showed a spike in early March. Other increases appeared in early January and late November. However, these movements did not match the heavy distribution seen in mid-2024. Long-term holders have experienced unrealized losses. The net unrealized profit-loss (NUPL) metric signals fear, last seen in February 2021. Meanwhile, the MVRV ratio has remained stable near 1.2 since October 2024. Even during a rally to December’s peak, the metric did not rise significantly.
A Strong Setup for a BNB Rally
BNB’s stability suggests new buyers continue to enter the market. Large profit-taking among holders has not occurred in recent months. The steady demand could support a potential price rebound. The price of BNB may have reached a local bottom.
A decline in NUPL over the past two months adds to that possibility. Buyers continue stepping in, preventing a deeper pullback. Fresh capital in the market strengthens support levels. With strong fundamentals, a rebound may take shape soon.
For now, long-term trends favor a bullish outlook. Accumulation remains steady, limiting heavy sell-offs. Market sentiment appears balanced, waiting for momentum to shift. A well-timed entry could offer significant upside.
