- Binance Coin (BNB) is currently range-bound, with buying pressure lacking despite recent bullish momentum.
- While some analysts predict significant long-term growth, BNB’s short-term outlook remains uncertain due to weak capital inflows and a lack of strong demand.
Binance Coin (BNB) has seen its fair share of volatility, but for the past five months, the token has been trading within a range once again. This came after what appeared to be a promising breakout in November 2024, but it quickly fell back into a similar range formation.
Despite this, recent reports from investment bank Standard Chartered have raised expectations for BNB. The firm believes the token could see a dramatic rise, potentially quadrupling to $2,775 by the end of 2028. Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, noted that BNB’s performance has closely mirrored that of Bitcoin (BTC) and Ether (ETH) since May 2021 in terms of both returns and volatility.
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However, the road to such lofty expectations is far from certain. With three years left until 2028, much can change in the crypto world. For now, traders are focusing on BNB’s current price action, which remains within a narrow range. As of recent analysis, there is a possibility that BNB could move toward the range high at $720, which would be a bullish signal. Yet, for all its momentum, BNB’s lack of buying pressure has raised concerns.
Despite surging past the mid-range resistance at $630, the buying volume has been tepid. To confirm any bullish trend, traders are looking for an increase in the On-Balance Volume (OBV) to push past local resistance levels. The absence of this suggests that the current rally might be short-lived unless stronger demand emerges.
On the bright side, data from Coinalyze shows that the spot demand for binance remains steady, with an increase in Open Interest (OI) from May 8th to 11th, signaling that traders have bullish expectations. However, a slight decline in OI over the past day suggests that some long positions are taking profits, which might limit the potential for a breakout.
Adding to the mix, the Net Unrealized Profit/Loss (NUPL) metric, which tracks the profitability of long-term holders, recently showed a shift in market sentiment. The NUPL climbed above 0.25, indicating a transition from fear to hope among investors. While this may suggest a positive outlook, the lack of strong capital inflows implies that BNB may remain range-bound for an extended period.
In conclusion, while BNB has the potential for a bullish move, especially toward the $720 range, the current market sentiment and buying pressure suggest that it may continue trading within its established range for now. Traders should watch for any significant changes in OBV and demand to gauge whether a breakout is truly on the horizon.