Binance Coin (BNB) price has surged above $245 this week as Blackrock’s Bitcoin ETF filling raised hopes of crypto regulatory clarity. Can the resilient long-term investors hold the $230 support zone?
This week, Binance Coin (BNB) has emerged among the big gainer in the top 10 crypto rankings. After a turbulent start to the month, on-chain data shows that crypto stakeholders have again begun to deploy transactions on the BNB chain.
Can the bulls build momentum after this week’s 7% price surge?
BNB Long-term Loyalists Have Remained Resilient
On-chain data reveals that most long-term BNB holders stopped selling once the price dropped below $275 on June 5. Indicatively, between June 4 and June 22, BNB Mean Coin Age surged 15% from 65.39 to 75.47.
Mean Coin Age evaluates the trading sentiment among long-term investors by computing the average number of days that coins in circulation have spent in their current wallet addresses.
When it rises significantly, it indicates a network-wide accumulation trend. Hence, the chart above signals the current prices are unfavorable for most long-term holders.
If they continue to hold out for more profitable positions, BNB price will likely enter recovery mode in the coming weeks.
Crypto Users are Returning to the BNB Chain Ecosystem
The BNB chain ecosystem has witnessed intense Fear, Uncertainty, and doubt (FUD) fuelled by the SEC lawsuit against Binance and CEO Chanpeng Zhao. However, Blackrock’s recent spot Bitcoin ETF filing on June 15 appears to have improved investor sentiment.
As seen below, the BNB Daily Active User count spiked to a 2023 peak of 6,179 on June 17, just two days after Blackrock’s ETF filing.
Daily Active Addresses evaluates user activity by summing up the daily number of wallet addresses that carry out transactions on a blockchain network.
Blackrock’s Bitcoin ETF seems to have improved the sentiment among BNB holders. As shown above, this has already impacted BNB’s price positively.
In conclusion, the growing user activity and resilience shown by BNB’s long-term investors are critical factors driving the ongoing price surge.
BNB Price Prediction: Can it Recliam $300?
If the user activity spikes continue, BNB bulls could push toward the $300 price target. However,
The resilient long-term holders have fiercely defended the $230 support level in the past week. And Santiment’s Market-Value to Realized-Value (MVRV) data indicates they could now push for more gains.
At the current price of $244, most holders who bought BNB in the last 30 days are sitting on profits of about 9%. Historical trading patterns suggest they would likely hold out until they break even at $270 before selling.
But if BNB breaks that resistance, the bulls can push the rally toward the $300 zone before they start booking profits.
Still, the bears could negate the bullish projection if the BNB price can drop below the critical $230 support. However, the investors looking to keep their losses above the 15% range could provide support at that zone.
If that support level caves, BNB could decline toward the 20% loss range at $203. However, dissatisfied holders may choose to cut their losses and inadvertently trigger a rebound.
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