New York, NY – Binance Coin retested a crucial support level at $593 before showing signs of a potential price surge, as indicated by various metrics on the charts.
After consolidating in a symmetrical triangle and breaking out on May 24, Binance Coin’s price surged by 22.44% to reach an all-time high before pulling back to retest the $593-support level. This pullback prompts a closer look at when bullish momentum might return to the altcoin market.
Currently valued at over $608, the cryptocurrency has dipped nearly 15% from its recent all-time high. With a market cap just below $90 billion, Binance Coin’s charts show that the 50-day and 100-day exponential moving averages are positioned around the $607.5 and $563.2 support levels, respectively.
Although Binance Coin is trading above its support levels, caution is advised when analyzing the altcoin charts. The Stochastic RSI indicator, with a reading of 6.10, suggests that Binance Coin may be oversold and susceptible to a potential price reversal before any significant price increases.
Whale activity and social volume have the potential to accelerate the surge for Binance Coin. Analysis of whale activity on Santiment indicates a positive ascending trend, with a growing percentage of stablecoins held by whales with over $5 million. This suggests that large investors are positioning themselves for a potential bullish rally.
Moreover, the social volume for Binance Coin has increased significantly, correlating with the market’s interests. The association between rising social mentions and price movements underscores the market’s bullish bias, as a higher number of mentions often precedes significant price actions.
Additionally, data from Coinglass on the long/short ratio for Binance Coin has recorded several bullish spikes, indicating that long positions are currently prevailing over short positions. With accumulating bullish momentum, increasing social volumes, and rising whale activity, Binance Coin appears poised to surge to higher price levels.
However, the altcoin faces the risk of a price drop if enough bearish pressure builds up and it closes below the resistance zone. As the market continues to evolve, monitoring key indicators and trends will be essential in determining the future trajectory of Binance Coin’s price movements.