Binance Coin Analysis

Binance Coin likely offered a good buying opportunity for investors who believe the cycle isn’t over.
The on-chain metrics showed accumulation and an influx of new buyers.

The all-time high for Binance Coin (BNB) was at $788, set on December 4, 2024. The exchange token is down roughly 20% since then, compared to the 22% decline that Bitcoin (BTC) has seen since its all-time high of $108.7k.

A look at the 7-day moving average (7DMA) percentage of addresses in profit showed that 85.8% of addresses were in profit. This metric has remained above 75% since February 2024, suggesting a prolonged distribution phase. Investors are left to ponder whether BNB will continue its downward trend or if patience will be rewarded.

Is BNB undergoing consolidation or accumulation?

The log chart of coin days destroyed (CDD) indicates that the last significant spike was in early March, correlating with brief distribution. This metric tracks older coin movements: higher CDD values indicate distribution.

The spikes in CDD have only occurred sporadically in early March, early January, and late November, not resembling the frantic movements seen in May and early June 2024.

The long-term net unrealized profit-loss (LTH NUPL) metric corresponds to “fear,” a sentiment not observed since February 2021. Long-term investors have seen unrealized losses increase while the price has remained near $600.

However, BNB has not shown signs of a long-term downtrend. The recent decline in NUPL may represent a local bottom for the token.

The market value to realized value (MVRV) ratio has hovered around 1.2 since October 2024, indicating new buyers entering the market, which keeps realized values high and the MVRV ratio stable.

Overall, there’s evidence of new buyers entering while long-term holders are not taking profits in large numbers. If they were, the MVRV would be decreasing, and the CDD would reflect that.

Conclusion

Long-term metrics reflect bullishness for Binance Coin. Thus, investors who believe the broader market cycle still has legs may find a favorable entry point in BNB.