On July 10, Binance Coin (BNB) spiked 4% to cross the $240 threshold following the much-heralded Arkham Intelligence project launch on the Binance Launchpad. Will Arkham’s public sale trigger bearish pressure?
Supported by the Binance Launchpad, Arkham is a blockchain intelligence platform that gives users access to a searchable database of on-chain transactions. The allure of linking on-chain data to real-world entities and activity has attracted millions of crypto users to join the platform.
Like most crypto projects incubated on the platform, Arkham allocated 5% (50 million Arkham tokens) of its total supply to the Binance Launchpad.
Figures released by Binance ahead of the Arkham token public sale showed that 114,454 participants committed 10.18 million BNB (~$2.4 billion) to participate.
With the SEC lawsuit FUD still hanging over Binance, will the holders sell off BNB and nuke the price in the coming days?
The Arkham Launch Triggered Intense Network Activity on BNB Chain.
On-chain data shows that the buzz surrounding the Arkham Intelligence launch and public sale had intensified BNB chain network activity. As seen below, the number of Daily Active Addresses soared 54% from 2,513 on July 9 to a peak at 3,889 on July 14.
Daily Active Address measures network activity by tracking the number of individual wallet address interacting on a given day. A sharp rise in DAA, observed over the past week, indicates growing demand for the asset.
However, the chart now shows that since the modalities of the public sale were completed, the BNB chain has begun to lose traction again. Between the recent high on July 14, BNB DAA has dropped 200% toward 1,293 at the close of July 17.
Read More: Binance Coin (BNB) Price Prediction
The Rising Social Buzz Could Generate Bearish Momentum
In addition to the wild swings in the BNB chain network traction, the Arkham token launch has generated significant media buzz. Santiment data shows that BNB Social Volume has been on the rise in the past week.
BNB Social Volume score rose 190% from 80 to 232 between July 9 and July 17.
Concisely put, Social Volume data evaluates the level of media coverage that a blockchain network is pulling. It aggregates mentions from relevant crypto social media channels.
Notably, this level of media attention can amplify bearish sentiment if the Arkham token sale generates negative momentum among participants.
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BNB Price Prediction: The Bears Could Target $210
Santiment’s Market-Value to Realized-Value (MVRV) data indicates most holders that bought BNB over the last 60 days are currently 10% underwater. And if the network activity continues to dwindle, BNB bears could push toward the $210 price target.
However, some resilient holders could fiercely defend the $220 support level to keep their losses below 15%. But, if the bearish momentum builds up as predicted, the Binance Coin price could drop further toward $200.
Still, the bulls could negate the bearish projection if the Binance Coin price drops below the $250 resistance.
However, some holders could sell when their losses drop to 5%, around $252. But, if that resistance level caves in, BNB could rise toward $280.
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