Binance Coin to rally? Active addresses and liquidations suggest…

• BNB’s daily active addresses surged from 797.3K to 879.1K, signaling rising network usage.
• Liquidation of $311.1K in shorts adds bullish momentum as BNB eyes further price gains.

Binance Coin [BNB] has captured traders’ attention with a remarkable surge in trading volume, climbing by 14.42% in 24 hours to $758.83 million at press time. This surge coincides with a breakout from a significant falling wedge pattern. 

However, with BNB trading at $571.25, up 2.67% in the last 24 hours at press time, the focus shifts to on-chain metrics to determine if this momentum will continue. Could this be the start of a breakout rally?

Has BNB’s network activity reached new heights?

One of the most important on-chain metrics for BNB is the number of active addresses. Daily active addresses rose from 797.3K to 879.1K, signaling a significant increase in network activity.

More active addresses mean higher participation across the Binance Smart Chain. This often indicates a growing demand for the coin. The rise in active users points to both institutional and retail interest in BNB.

As more addresses interact with BNB, its utility and potential for growth increase.

Source: Artemis

How strong is BNB’s transaction volume?

Trading volume is another critical indicator of market sentiment. BNB’s volume spiked 14.42%, reaching $758.83 million. A sharp rise in trading volume can precede major price movements. Increased volume generally reflects growing investor confidence.

More people are actively trading BNB, which can lead to further price momentum. If the volume trend continues, it could signal a sustained rally for BNB as more participants enter the market.

Source: Coinglass

What do liquidations reveal about market sentiment?

Liquidation data offers an interesting perspective on market sentiment. BNB experienced total liquidations of $311.1K in short positions and $110.65K in long positions across major exchanges like Binance, OKX, and Bybit. 

The higher short liquidations suggest that bearish traders were forced to close their positions, potentially fueling the recent price surge as more short positions were wiped out.

Therefore, with BNB sitting at around $571 at the time of writing, the liquidation of shorts could trigger a cascading effect of price movement, encouraging more bullish sentiment in the market.

Source: Coinglass

Is BNB positioned for a bull run?

On-chain metrics indicate that BNB is gathering strength, with rising active addresses, healthy transaction volumes, and decreasing exchange reserves all pointing to a potentially bullish outlook. The liquidation of shorts further adds momentum to the current price rally. 

Read Binance Coin’s [BNB] Price Prediction 2024–2025

If these trends persist, BNB could very well be primed for further gains, setting the stage for a sustained bull run in the coming weeks. However, traders and investors alike should keep a close eye on these key metrics as BNB continues to gain traction.