- An early BNB holder sold some of his coins for a profit of $54 million.
- BNB moved sideways and was able to continue consolidating between $210 and $215.
On October 8, one of the early adopters and holders of Binance coin [BNB] sent the coin worth $1.48 million to the Binance exchange. For holding the coin for so long, Lookonchain revealed that the holder made a $54 million profit on the sale.
Is your portfolio green? look at the BNB Profit Calculator
An early one $BNB holder has deposited 7,005 $BNB ($1.48 million). #Binance again today.
The early holder has a profit of more than $54 million $BNB and currently has 5,447 $BNB ($1.15 million) left.https://t.co/JzcPPKtog1 pic.twitter.com/k2B6IKF2RO
— Lookonchain (@lookonchain) October 8, 2023
The first time the holder sold was in 2018 after depositing 500,543 BNB, worth $56 million, into Binance. That happened at an average price of $112. Interestingly, the recent sell-off did not lead to a huge plunge for BNB.
No strong movement
According to CoinMarketCap, BNB was exchanging hands at $211.75 at the time of writing. This was because it lost only 0.89% of its value in the last 24 hours.
Regardless of the strength of the coin, traders may need to be cautious when opening the position. Technical indicators also seemed to support this idea.
On the 4-hour chart of BNB/USD, the Bollinger Bands (BB) showed that BNB’s volatility had stabilized somewhat. In a case like this, finding a notable prize can be rare fluctuations. Moreover, none of the upper or lower bands reached the BNB price of $211.
So the coin was not overbought or oversold. Therefore, traders may need the lull in the market to change if they want to profit from a position. Another indicator that revealed a similar sentiment was the Moving Average Convergence Divergence (MACD).
At the time of writing, the MACD was at 0.1, indicating that BNB’s momentum was bullish. However, the 12-day (blue) and 26-day (orange) EMAs were below the zero histogram point and very close together.
Source: TradingView
This indicates that BNB does not have a clear direction as the presence of buyers and sellers in the market was almost equal. Therefore, it is likely that BNB will see a consolidation of around $210 to $215 in the near term.
BNB has low liquidity
On the derivatives side of the market, BNBs Open interest amounted to $320.48 million – almost the same value that was on the market on October 7. Open Interest keeps track of every open contract.
How many Worth 1,10,100 BNBs today?
A high Open Interest indicates an increase in liquidity, while a low Open Interest indicates a lack of liquidity towards contracts related to an asset. For BNB, the Open Interest suggests that traders are mostly on the sidelines and likely waiting for a notable move in price action before taking a position.
Source: Coinglass
In the coming days, traders are likely to remain committed to this view as the market looks set to continue a sideways move.