Binance Coin [BNB] Shows Signs of Rebound as New Buyers Enter Market

Binance Coin [BNB] has exhibited signs of a potential rebound, offering a buying opportunity for investors. On-chain metrics reveal an influx of new buyers entering the market, while long-term holders are not liquidating their positions in significant numbers. This scenario suggests a period of accumulation rather than distribution.

The 7-day moving average percentage of addresses in profit metric indicates that 85.8% of addresses are currently in profit, a figure that has remained above 75% since February 2024. This metric suggests that a prolonged distribution phase is not in play, and investors should remain patient.

The log chart of the coin days destroyed (CDD) metric shows that the last significant spike in CDD occurred in early March, indicating brief distribution. The metric tracks the movement of older coins, with higher CDD values indicative of distribution. However, the metric has only sporadically shown high values, and it does not resemble the frantic movement seen in May and early June 2024. This suggests that BNB is not undergoing a long-term downtrend.

The long-term net unrealized profit-loss (LTH NUPL) metric value corresponds to “fear,” a sentiment not seen since February 2021. Long-term investors have seen their unrealized losses rise, even as the price remains around $600. However, BNB has not embarked on a long-term downtrend. The drop in NUPL in the past two months could mark a local bottom for the token.

The MVRV ratio has hovered around the 1.2 level since October 2024, indicating new buyers entering the market and keeping the realized value high and the MVRV ratio stable. This further supports the evidence of new buyers entering and long-term holders not taking profits in large numbers. If they had been, the MVRV would be falling, and the CDD would reflect it.

Overall, the long-term metrics outlined bullishness for Binance Coin. Investors who believe the broader market cycle has not ended could find a favorable entry in BNB. The all-time high for Binance Coin [BNB] was at $788, set on the 4th of December 2024. The exchange token is down roughly 20% since then, compared to the 22% that Bitcoin [BTC] has shed since its all-time high at $108.7k. This presents a buying opportunity for investors who believe the cycle isn’t over.