BNB price was one of the coins that achieved an impressive recovery after a bearish weekend. However, the Binance coin bounce-back was largely driven by retail, as whales sat on the sidelines.
However, this week the market demonstrated some significant changes. The lack of demand for Binance coin from the whales cohort highlighted something important.
That is, a high probability that the recovery was going to be short-lived. The cryptocurrency managed to push to a new all-time high on Monday.
Unsurprisingly, this momentum was short-lived, consequently paving the way for a retracement.
BNB price retreated to $1,168 at the time of observation, which was equivalent to a 15% retreat from its recent top on Monday.
Interestingly, large order book data revealed that whales have been buying back again this time. Whales reportedly acquired about $9.5 million worth of BNB on Binance and OKX spot in the last 24 hours. They also executed about $108 million worth of long positions.
Can Binance Coin Resume its Bullish Momentum?
It is worth noting that the demand from whales in the last 24 hours was relatively low and subject to potential change.
BNB coin maintained overall net spot outflows worth over $41 million in the last 24 hours. BNB crypto experienced a spike in negative funding rates on Monday.
It was the sharpest negative funding rate spike observed in the last 5 months, and it highlighted the rise in bearish expectations at the start of the week.
However, BNB weighted funding rates reverted to positive funding rates in the last 24 hours. This could signal that the market was back in favor of bullish expectations after a significant discount.
Long liquidations were still on the receiving end by $4.2 million as price pushed lower. Open interest also cooled down substantially from its $2.9 billion ATH on 8 October to $2.08 billion at the time of observation.
The declining open interest highlighted the shift towards caution, especially after the recent crash. It also revealed heightened uncertainty over the market’s ability to recover.
BNB Chain Development May Boost Confidence
While BNB price action favored the bears in the first half of the week, a major development was announced that could potentially influence the second half.
CMB International, a subsidiary of a major Chinese bank, announced the roll-out of a $3.8 billion money market fund, which just launched on BNB chain.
The development marked a major step forward, especially when it comes to blurring the lines between decentralized Finance (DeFi) and traditional finance.
This highlighted rising engagement from the Asian market as the world embraces blockchain technology.
For the BNB chain, this development highlighted growing adoption from mainstream financial institutions.
In other words, CMB International’s decision to adopt the BNB chain will not only boost the network’s institutional adoption but also the demand for BNB crypto.
On paper, this development may boost demand for the cryptocurrency. After all, it was a win for the BNB chain’s role as the financial system transitions to WEB3.
However, it is also worth noting that Binance recently received significant backlash over claims of market manipulation. This could damage market sentiment against BNB crypto.
On the plus side, Binance coin solid recovery after the weekend crash revealed that the market remained interested, considering its previously aggressive rally.
BNB is one of the coins that received robust levels of engagement and demand in the last few weeks.
