- BNB eyeing a $700 breakout after reclaiming 30% of its value from its April lows
- 96.05% of supply being held by whales sets the stage for a potential squeeze
At the time of writing, Binance Coin [BNB] stood out as the lone top-cap token holding green amidst the broader market’s bout of depreciation. However, it may not be out of the woods yet on the weekly charts.
In fact, its price action has made three failed pushes at the $685 resistance, each met with heavy sell-side pressure. This level has become a psychological and technical ceiling and until it’s convincingly flipped into support, the $700-target will stay off-limits.
For bulls, the path forward hinges on patience and precision.
BNB revisits key supply wall
At press time, BNB was up nearly 30% from its early-April low of $520, having punched through three successive higher highs. It appeared to be a textbook sign of an accumulation phase unfolding under the surface.
Sure, that 30% leg-up pales in comparison to the 90% impulse rallies from Ethereum [ETH] and Solana [SOL]. However, BNB’s weekly chart tells a different story. Since 23 May’s retest of $650, the altcoin has posted a steady 5.2% hike – A sign of relative strength.
Zooming into the BNB/BTC ratio revealed that the pair is now staging a reversal after tapping a key three-month demand zone twice in May. The first bounce was reactionary – High beta, low conviction. This time, the rotation may be methodical, hinting at strategic capital rotation .
Source: TradingView (BNB/BTC)
As a result, BNB is once again knocking on the door of the $700 supply wall. In fact, it appeared to be just 2.6% away from reclaiming that psychological handle.
However, the $680–$695 range has proven sticky, rejecting price action three times in under three weeks.
Strategic execution now key for bulls
Interestingly, the aforementioned chart has also been flashing an early signal for an altseason setup. Especially as Bitcoin dominance [BTC.D] struggles to hold above the critical 64.14%-level, with BTC grinding sideways in a tight range.
Historically, these congestion zones in BTC.D crack open rotation corridors into altcoins. The BNB/BTC pair kicking off a reversal here fits the narrative.
To add fuel to the fire, BNB’s Open Interest just popped 7% to a hefty $862.3 million – A sign of fresh leveraged bets and greater trader conviction.
This rising OI, coupled with the pair’s bounce, hinted at growing risk appetite and a potential breakout in altcoin alpha brewing under the surface.
Source: Coinglass
Bottom line? Bid-side pressure has been stacking up from both rotation flows and speculative bets.
However, Glassnode data underscored a key trend – A whopping 96.05% of BNB supply is sitting with whales who hold over 10k coins. Unless these big players aggressively pile in at resistance, BNB will risk another volatile squeeze cycle.
