Binance Coin Price Forecast: BNB needs to breach this crucial supply barrier to set up record levels again

Binance Coin price shows a short-term rejection around the supply zone’s upper layer at $594.32.
A close above the said level is a must if BNB bulls want to scale to new highs.
Supply distribution shows that whales holding between 100,000 to 1,000,000 BNB are accumulating.

Binance Coin has seen a massive downfall after recently erecting new all-time highs. Now, BNB stands to retest this level and perhaps set up new ones shortly.

Binance Coin price at critical level

Binance Coin price hit a new high of $638.56 on April 12 and retraced nearly 33% since then. After finding support at $428, BNB has created two higher highs and is now on the verge of toppling a supply zone that ranges from $556.40 to $594.32.

If successful, Binance Coin price will retest the local top after a 7% surge and target a leg-up to the 127.2%, 141.4% and 161.8% Fibonacci extension levels at $695.84, $725.74 and $768.69, respectively.

BNB/USDT 4-hour chart

Supporting the bullish narrative is the addition of two new whales holding 100,000 to 1,000,000 BNB. This 5.3% increase indicates that these investors are optimistic about BNB price performance in the near future.

BNB supply distribution chart

Whale transaction count is a metric that tracks transactions worth $100,000 or more. A surge in this metric serves as a proxy to high net worth individuals’ investment interest and is often followed by a spike in the market value.

At the time of writing, the count of such transactions increased by 275% since April 20, painting a bullish picture for BNB.

BNB whale transaction count chart

While the upside scenario seems straightforward, it is dependent on the breach of the said supply zone. A potential spike in selling pressure that leads to a decisive close below $550 will invalidate the bullish thesis.

Under these conditions, Binance Coin price could slide 9% toward the upper band of the demand zone at $508.96.

If sellers persist, $470.20 can likely be retested as well.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram