Share:
  • Binance Coin price has hit a new all-time high at $53 on February 2. 
  • The digital asset had a massive 22% breakout in the past 24 hours but might be poised for a correction.
  • Several metrics show BNB price is overextended and needs to cool off.

Binance Coin was trading sideways for the last three months of 2020 and started a bull rally at the beginning of 2021, climbing from $36 to an all-time high of $53 in just one month. The digital asset is slightly overextended now and needs to see a healthy pullback in order to resume the uptrend.

Binance Coin price needs a healthy correction to maintain the uptrend

The trading volume of Binance Coin has hit an all-time high of $1.4 billion in the past 24 hours. This massive spike is a bearish sign as in the past, significant increases in trading volume have led Binance Coin price to a correction as it happened on September 14, 2020, or November 24, 2020. 

bnb price

BNB trading volume chart

Additionally, the MVRV (30d) has spiked above 10% into the risk area, which often signifies BNB is about to see a significant pullback in the short-term. 

bnb price

BNB MVRV (30d) chart

Using the Fibonacci Retracement tool, we can identify several key support levels for BNB. The nearest is located at the 78.6% Fib level ($47.2). If the bears can push Binance Coin below this point, they will likely drive the digital asset down to $42.6 at the 61.8% level. 

bnb price

BNB/USD daily chart

However, the number of large holders with 10,000 to 100,000 BNB coins ($520,000 to $5,200,000) has increased by seven since the beginning of 2021, which indicates they believe the digital asset can continue to climb higher.

bnb price

BNB Holders Distribution chart

If BNB cracks the last resistance level at $53, it will likely rise towards $60, which is a psychological level and the 127% Fibonacci level. 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Bitcoin likely to remain in red through the next quarter if history is any indication

Bitcoin likely to remain in red through the next quarter if history is any indication

Bitcoin (BTC) price produced a monthly close at $27,210, noting a -6.92% return for May. The last-minute slide in BTC put an end to the four-month bullish streak that kickstarted the 2023 rally.

More Bitcoin News

Ethereum vs. SEC: Implications of Wahis’ insider trading settlement on ETH

Ethereum vs. SEC: Implications of Wahis’ insider trading settlement on ETH

Ethereum (ETH) is the subject of a new controversy, with the second-largest crypto finding itself in the rut after the United States Securities and Exchange Commission (SEC) settled its insider trading case against the Wahi brothers.

More Ethereum News

Justin Sun’s TRON hits all-time high of 10.9M daily transactions, braving crypto winter

Justin Sun’s TRON hits all-time high of 10.9M daily transactions, braving crypto winter

Justin Sun, the founder of TRON – one of the largest decentralized blockchain DAO ecosystems in crypto – shared a new milestone for the token on Thursday. TRON processed 10.9 million in daily transactions, hitting a record high.

More Cryptocurrencies News

Ethereum fees decline by 70% from 2023 highs as top DeFi protocols lose users

Ethereum fees decline by 70% from 2023 highs as top DeFi protocols lose users

Ethereum is currently facing trouble in the spot market due to the broader market bearishness as well as investors' skepticism. But while the spot market only recently took a turn for the worse, the DeFi space has been only negative for a long time.

More Cryptocurrencies News

Bitcoin: BTC delays inevitable crash to $25,000

Bitcoin: BTC delays inevitable crash to $25,000

Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.

Read full analysis

BTC

ETH

XRP