Binance Coin (BNB) is showing promising signs of strength as on-chain activity skyrockets, raising hopes of a bullish breakout. As of press time, BNB was trading at $654.03, reflecting a minor intraday weakness of 0.09%, but its network fundamentals paint a more optimistic picture.
1. BNB’s Network Activity Hits All-Time High
BNB’s daily transactions have soared from 6 million to over 15 million since early May, representing a 150 %+ increase in activity. In parallel, active wallet addresses are nearing 2 million, suggesting deeper engagement and growing utility across the Binance Smart Chain.
This rise in usage signals robust demand for BNB-powered services, even as the price movement remains relatively muted. The growing fundamentals point toward a potential supply-demand imbalance that could favor bulls if momentum continues.
2. Derivatives Volume Booms — But Confidence Wavers
Data shows BNB’s Long/Short Ratio on Binance at 1.70, with 63.02% of accounts holding long positions. However, recent volatility in the ratio suggests waning conviction, indicating traders are balancing optimism with caution.
Meanwhile, Options volume spiked by 102.71% to $2.37 million, and overall derivatives volume surged 63.83% to $630.92 million. The Options Open Interest climbed 47.29%, signaling heightened speculative positioning. In contrast, Futures Open Interest rose only 0.67%, pointing to slow growth in deeper market bets.
This divergence may suggest bullish sentiment, but with lingering doubts about long-term commitment.
$700 Resistance or Reversal?
Technically, BNB is holding strong above a key ascending trendline, with $625 acting as critical support. The next major test lies at $700, which, if flipped, could ignite further bullish momentum. However, rejection from this zone might lead to a pullback, potentially retesting the $625 area.
The Stochastic RSI, hovering around 41.51, indicates neutral momentum, suggesting that the market awaits a clear catalyst to decide the next move.
Conclusion
BNB is currently in a neutral-to-bullish position, supported by surging network activity and aggressive derivatives participation. While sentiment is positive, mixed signals in trader conviction and resistance near $700 may determine its next trajectory.
If bulls manage to clear the $700 hurdle, a continuation of the uptrend could be on the cards. Conversely, failure to break higher may lead to a sideways consolidation or dip toward $625.
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