BNB finds favor with investors as BTC dominance rises

BNB finds favor with investors as BTC dominance rises

  • BNB whales have been buying the dip according to this analysis.
  • BNB is positioned to leverage robust potential growth during the next major rally.

Bitcoin’s [BTC] dominance has been on the rise in 2023 and has therefore been receiving most of the attention. Nevertheless, some altcoins such as Binance Coin [BNB] have been on investors’ radar according to this Santiment analysis.

Read Binance Coin’s [BNB] price prediction 2023-2024

Santiment recently shortlisted Binance Smart Chain’s BNB as one of the altcoins still receiving significant attention. In other words, it could be taken as a good candidate for traders looking for decent price movements under recent market conditions.

🗣️ With #Bitcoin‘s rise in price dominance in 2023, it’s no surprise to see that greater attention is being paid to #crypto‘s #1 market cap asset. But keep an eye on $ETH, $ADA, $XRP, $BNB, and other assets that are seeing little attention by comparison.

— Santiment (@santimentfeed) July 3, 2023

The analysis was based on the level of social activity that BNB and other shortlisted counterparts have been achieving. This was despite BNB’s social dominance dip over the last three months. Both, BNB’s social dominance and social volume tanked significantly in the second week of June.

BNB social metrics

Source: Santiment

The dip in the social metrics coincided with the spike in BTC dominance. Nevertheless, its social dominance was seen as more active than most altcoins. The evidence of the attention that BNB has been receiving in the last three weeks was more evident in the level of hodling.

BNB whales have been making a splash but will they cause a wave?

BNB’s mean coin age has been rising since early June, confirming that the number of traders hodling has been rising. At press time, it stood at a four-week high. Meanwhile, the Market Value to Realized Value (MVRV) ratio was seen rising, especially, since the end of June, and a sudden spike managed to push it to a new monthly high.

BNB mean coin age and MVRV ratio

Source: Santiment

The MVRV ratio’s recent uptick confirmed a sudden surge in profitability for BNB holders. Interestingly, BNB’s volume does not indicate a large spike during this period. This suggested that whales might be the ones buying BNB.

BNB’s price action achieved a healthy 13% bounce from its lowest price point in the last seven days to its highest point. This bounce might set the pace for BNB in July. This would be the case especially if it secures more whale activity. BNB exchanged hands at $244 at press time, which means it was still near its current 2023 lows.

BNB price action

Source: TradingView

Both the Relative Strength Index (RSI) and the Money Flow Index (MFI) confirmed that liquidity was seen flowing into BNB in the second week of June. But why is BNB in the list of altcoins that are receiving more attention? The answer might be the fact that BNB is the native cryptocurrency of a major network.

Is your portfolio green? Check out the BNB Profit Calculator

Chances are that the BSC will be one of the most used networks in the next bull market. That has been the case in the past hence it is backed by strong utility.

Read More

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.