Binance Coin [BNB] has caught the attention of traders with a significant increase in trading volume, up 14.42% in 24 hours to $758.83 million at the time of writing. This breakout coincides with a notable descending pattern.
However, with the coin trading at $571.25, up 2.67% over the past 24 hours at the time of writing, the focus turns to on-chain metrics to determine whether this momentum will continue. Is this the beginning of a new breakout?
Has BNB Network Activity Reached New Heights?
One of the most important on-chain metrics for BNB is the number of active addresses. The number of daily active addresses has increased from 797.3K to 879.1K, showing a significant increase in network activity.
An increase in active addresses means more participation on the Binance Smart Chain. This usually indicates that there is growing demand for the coin. An increase in active users shows both institutional and individual investor interest in BNB.
As more and more addresses interact with BNB, the usefulness and growth potential of this Coin is further confirmed.
How strong is BNB trading volume?
Trading volume is another important indicator of market sentiment. BNB trading volume jumped 14.42% to $758.83 million. A sharp increase in trading volume can foreshadow large price movements. Increased volume often reflects growing investor confidence.
More people are actively trading BNB, which could lead to further price momentum. If the volume trend continues, it could mark a sustained rally for BNB as more investors enter the market.
What does liquidation data reveal about market sentiment?
Liquidation data provides an interesting insight into market sentiment. BNB experienced a total of $311.1K in liquidations from shorts and $110.65K from longs on major exchanges such as Binance, OKX, and Bybit.
The liquidation of many short positions suggests that bearish traders were forced to close their positions, which may have contributed to the recent price increase as many short positions were cleared.
So, with BNB at around $571 at the time of writing, liquidating short positions could trigger a ripple effect of price movement, encouraging more positive sentiment in the market.
Is BNB Preparing for a Bull Run?
On-chain metrics show that BNB is gathering strength, with increasing active addresses, healthy trading volume, and decreasing exchange reserves all pointing to a potentially bullish outlook for the coin. Liquidation of short positions adds further fuel to the current rally.
If these trends hold, BNB could very well be poised for further gains, setting the stage for a sustained rally in the coming weeks. However, traders and investors should keep a close eye on these key indicators as BNB continues to gain traction.
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