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Binance Coin (BNB) continues to exhibit steady accumulation and buying pressure since March, signaling potential bullish momentum despite prolonged range-bound trading.
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Recent on-chain activity on the Binance Smart Chain has surged, with decentralized exchange (DEX) volumes reaching an impressive $178 billion in May, underscoring robust ecosystem engagement.
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According to COINOTAG analysis, the mid-range price level of $628 has acted as a critical pivot, serving alternately as a demand and supply zone since November, influencing trader strategies.
Binance Coin shows steady accumulation and strong on-chain activity, with key support at $628 offering swing trading opportunities amid ongoing range-bound price action.
BNB’s Consolidation Phase Offers Strategic Entry Points for Traders
Despite Binance Coin’s inability to break out of its established trading range between $531 and $725 since December 2024, the token has demonstrated consistent buying interest. This consolidation phase has frustrated long-term investors seeking decisive trends but has simultaneously created fertile ground for swing traders. The 1-day chart reveals a bullish market structure, with the mid-range level at $628 aligning with a significant bullish order block identified in November. This zone has repeatedly acted as both support and resistance, making it a critical price level to monitor.
Source: BNB/USDT on TradingView
On-Chain Metrics and Technical Indicators Support Accumulation Thesis
Technical indicators reinforce the narrative of accumulation. The On-Balance Volume (OBV) has shown a steady rise over the past 10 weeks on the daily timeframe, indicating sustained buying pressure. Meanwhile, the Relative Strength Index (RSI) remains neutral at 49, suggesting room for further price movement without immediate overbought or oversold conditions. Traders should note that a drop below the $630 support level could signal a bearish trend shift, warranting cautious risk management.
Liquidity Heatmaps Reveal Key Price Levels and Potential Resistance Zones
Liquidity analysis provides additional context for potential price action. The 3-month liquidation heatmap highlights a scarcity of significant liquidation clusters near the current market price, implying limited immediate volatility triggers. Key liquidity zones are identified around $630 and $700, though these levels exhibit less concentrated liquidity compared to the $650 zone observed in early May. This suggests that while these targets are attractive, a strong breakout may require sustained momentum and time to develop.
Source: Coinglass
Short-Term Trading Zones Highlight Swing Opportunities
The 2-week liquidation heatmap further refines potential trading zones, emphasizing the upper half of BNB’s range as a hotspot for swing traders. Price levels near $640 and $690 emerge as magnetic targets, offering clear entry and exit points for tactical trades. Traders are advised to consider initiating long positions on dips to the $630-$640 support corridor, with profit-taking strategies near $690. However, adverse movements in Bitcoin’s momentum remain a critical risk factor that could invalidate bullish setups and push prices below key support levels.
Source: Coinglass
Conclusion
Binance Coin remains entrenched within a well-defined trading range, reflecting a balance between accumulation and distribution phases. While long-term investors may find the consolidation period challenging, swing traders can capitalize on clearly delineated support and resistance zones, particularly around the $630-$640 and $690 levels. Sustained buying pressure, as evidenced by rising OBV and robust on-chain activity, supports a cautiously optimistic outlook. However, traders should remain vigilant to broader market dynamics, especially Bitcoin’s price action, which could significantly influence BNB’s trajectory in the near term.
