Can a $8.5M whale position keep BNB above $700?

Binance Coin: Can a $8.5M whale position keep BNB above $700?

Binance Coin [$BNB] is up slightly as the broader crypto market cools off from the previous week’s uptrend.

However, whale sentiment is still positive. From a daily outlook, the altcoin remains bullish, with whales borrowing capital to go long. That said, will $BNB stay above $700 and become among the strongest altcoins in this recovery?

Whale borrows capital on Venus to buy Binance Coin

A whale is going long on Binance Coin with more than $8.50 million. As per Lookonchain, the whale bought 8,474 $BNB worth around $5.90 million and transferred the tokens to Venus Protocol.

The whale used a lending loop, depositing the acquired $BNB tokens on Venus Protocol and using them to borrow 2.60 million $USDT. The borrowed $USDT was deposited into Binance to purchase more $BNB.

That was not the only bullish indicator.

In the next 24 hours, the $BNB ecosystem will activate Pasteur Hardfork on its mainnet. The upgrade would improve $BNB’s bridges and validator protections, as BEP-675 gave builders room to fill blocks. Moreover, throughput would be higher.

However, $BNB Spot ETFs have been the worst-performing altcoin ETFs so far. It has had three days of activity, with two of those days seeing inflows, while on the 21st of August, the products saw $262K in outflows. The Cumulative Total Net Inflow is $1.19 million.

Can $BNB hold above $700?

The price charts showed the altcoin had broken out of a sideways range that had been in place since June. This range between $542 and $620 was below another consolidation between $583 and 688.

Currently, $BNB is trading above $700, but it’s now facing resistance at the same zone. The Bollinger Bands (BBs) have opened up since the breakout, indicating a very volatile market.

The mid-level of the BBs was at $625, a zone where $BNB could revert to if the broader crypto market entered a correction.

However, the MACD remained bullish, though the bars have started becoming faint. This indicates bulls have eased their aggressive buying, but uptrend continuation hinges on staying above $700 and the two consolidations.

If $BNB clears up the zone at $700-$720, the next price targets are set around $950 or higher. That would make Binance Coin one of the strongest altcoins in the ongoing crypto recovery. Otherwise, the altcoin might revisit levels below $690.

Final Summary

• Whale uses $BNB to borrow more capital from Venus Protocol, which he then used to buy more $BNB on Binance.
• $BNB price action shows strong bullish signals, but bears were rejecting continuation at $700.

Source: cryptonews.net