- Analysis showed that the coin could see an upswing to $738 by June.
- Derivatives market data indicated bullish sentiment, as BNB might favor long positions.
The price of Binance Coin [BNB] could be on the verge of dropping below $600 but in June, the value of the coin might trade higher. AMBCryto got wind of this possibility after evaluating some indicators on-chain.
To start with, we considered the Social Dominance, which metric gauges sentiment by looking at the overall talk online about an asset.
At press time, BNB-related discussions increased, prompting social dominance to hit 1.012%
Attention is shifting to the coin
This increase meant that the cryptocurrency was one of the most talked-about out of the top 100. Historically, a rise in the metric could foreshadow demand for the coin.
Also, as long as the dominance does not get too heated, the price can appreciate.
However, the last time the metric hit 1.641%, the price of the coin reached $632 from a low of $511. If the pattern were to follow a similar trend, BNB could be set to hit $738 within the next 35 days.
Source: Santiment
At press time, the price of the coin was $601. Furthermore, this was around the same value it was 30 days ago. Meanwhile, BNB’s price was 12.96% down from its all-time high.
With the momentum displayed, the cryptocurrency could be on a path to a new high before the end of the second quarter (Q2).
Furthermore, it seemed traders in the derivatives market shared the thought in like manner.
Evidence of this was reflected in the Long/Short ratio. The Long/Short ratio gives an insight into investors’ expectations. Reading more at 1 or above, suggest that traders are bullish on an asset.
However, if the reading is below 1, it implies a bearish sentiment. At press time, BNB’s Long/Short ratio was 1.10, according to Coinglass.
Simply put, this ratio implied that there were 1.10 as many long positions as shorts. On most occasions, the bullish reading of the indicator hardly gets to this point.
Source: Coinglass
The support levels have landed
Therefore, the high value suggests that there was growing confidence that BNB might surpass $700. In addition, to this, AMBCrypto analyzed the Net Positions Heatmap.
This is similar to the volume profile. But the difference is that the Net Positions Heatmap gauges market sentiment and strength by highlighting positions that traders have opened.
At press time, there was an increase in the number of long openings at $601, $616, and $630. From a trading perspective, all these areas can act as support for the cryptocurrency.
Source: Santiment
Read Binance [BNB] Price Prediction 2023-2024
Should buying pressure increase when BNB revisits these points, the price might climb toward $738 as mentioned above. However, traders might need to be wary.
This is because a decline in buying pressure could cause the coin to swing sideways. In a highly bearish situation, the price might fall to $565— the next underlying support.
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