Whale Activity in the BNB Market: Diverging Strategies
In the past 24 hours, Binance Coin (BNB) has experienced a 1.59% price increase, despite significant short-selling pressure from large-scale investors, commonly known as "whales," and a notable decline in buying pressure.
Whales' Bearish Bets vs. Retail Investors' Optimism
Heatmaps analyzing the activity of both whales and retail investors reveal that whales are predominantly betting on a decrease in BNB's price, more so than retail traders. This bearish stance by whales contrasts with the market's overall stability and slight upward movement.
Network Activity and Its Impact on BNB's Price
This price resilience coincides with a surge in activity on the Binance Chain, reaching its highest level in three years. The increased network engagement has played a role in offsetting the selling pressure exerted by whales.
Whales' Hedging Strategies and Market Implications
Currently, whales are maintaining their spot positions while utilizing futures contracts to hedge against potential price declines. This strategy allows them to mitigate risks in the event of a market downturn, potentially misleading retail investors about the market's direction.
Declining Buying Pressure and Potential Market Reversal
Recent data indicates a decrease in buying pressure for the BNB/USDT pair. The buying pressure is at 0.466, while selling pressure stands at 0.669, resulting in a negative delta of 0.203. This ratio is weaker compared to the previous week. If buyers do not re-enter the market, the current upward trend may stall.
BNB's Recent Price Movements and Key Support Levels
In recent days, BNB's price ascended from $581 to $691.31 before entering a consolidation phase. The price then retraced to $652, where it found support. As of this writing, BNB is trading around $661. A decisive move above the $660 resistance level could set the stage for targets at $667, $684, and $705.
Conversely, failure to maintain a position above $660 may lead to a retest of the $652 support level and potentially a drop below $644.
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Source: AM
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