Binance Coin Shows Bullish Momentum With 178 Billion In DEX Volumes

Binance Coin (BNB) has shown a steady accumulation trend since March, indicating potential bullish momentum despite its prolonged range-bound trading. This trend is supported by a surge in on-chain activity on the Binance Smart Chain, with decentralized exchange (DEX) volumes reaching an impressive $178 billion in May. This highlights robust ecosystem engagement and suggests that traders are actively participating in the market.

According to COINOTAG analysis, the mid-range price level of $628 has been a critical pivot point since November, acting alternately as a demand and supply zone. This level has influenced trader strategies, making it a key area to monitor for potential price movements. The consistent buying interest in BNB, despite its inability to break out of its established trading range between $531 and $725 since December 2024, has created opportunities for swing traders. The 1-day chart reveals a bullish market structure, with the mid-range level at $628 aligning with a significant bullish order block identified in November. This zone has repeatedly acted as both support and resistance, making it a critical price level to monitor.

Technical indicators further support the accumulation thesis. The On-Balance Volume (OBV) has shown a steady rise over the past 10 weeks on the daily timeframe, indicating sustained buying pressure. Meanwhile, the Relative Strength Index (RSI) remains neutral at 49, suggesting room for further price movement without immediate overbought or oversold conditions. Traders should note that a drop below the $630 support level could signal a bearish trend shift, warranting cautious risk management.

Liquidity analysis provides additional context for potential price action. The 3-month liquidation heatmap highlights a scarcity of significant liquidation clusters near the current market price, implying limited immediate volatility triggers. Key liquidity zones are identified around $630 and $700, though these levels exhibit less concentrated liquidity compared to the $650 zone observed in early May. This suggests that while these targets are attractive, a strong breakout may require sustained momentum and time to develop.

The 2-week liquidation heatmap further refines potential trading zones, emphasizing the upper half of BNB’s range as a hotspot for swing traders. Price levels near $640 and $690 emerge as magnetic targets, offering clear entry and exit points for tactical trades. Traders are advised to consider initiating long positions on dips to the $630-$640 support corridor, with profit-taking strategies near $690. However, adverse movements in Bitcoin’s momentum remain a critical risk factor that could invalidate bullish setups and push prices below key support levels.

In conclusion, Binance Coin remains entrenched within a well-defined trading range, reflecting a balance between accumulation and distribution phases. While long-term investors may find the consolidation period challenging, swing traders can capitalize on clearly delineated support and resistance zones, particularly around the $630-$640 and $690 levels. Sustained buying pressure, as evidenced by rising OBV and robust on-chain activity, supports a cautiously optimistic outlook. However, traders should remain vigilant to broader market dynamics, especially Bitcoin’s price action, which could significantly influence BNB’s trajectory in the near term.