Binance Coin [BNB] Price Prediction: Is This the End of the Road for the Exchange Token?

The all-time high for Binance Coin [BNB] was at $788, set on the 4th of December 2024. The exchange token is down roughly 20%

Binance Coin [BNB] hit an all-time high of $788 on 4 December 2024. Since then, the exchange token has dropped about 20%, compared to Bitcoin's [BTC] 22% decline from its all-time high of $108.7k.

According to Glassnode, the 7-day moving average of the percentage of addresses in profit showed that 85.8% of addresses were in profit. The metric's 7DMA has remained above 75% since February 2024. This suggested a prolonged phase of distribution.

This brought up the question of whether BNB was preparing to move lower, or should investors remain patient?

Could BNB be preparing to move lower, or should investors remain patient?

The log chart of the coin days destroyed showed that the last time the metric had a significant spike in CDD was early March, indicating brief distribution. The metric, which tracks the movement of older coins, had only sporadically shown high values, such as in early March, early January, and late November. However, it did not resemble the frantic movement from May and early June 2024.

The long-term net unrealized profit-loss (LTH NUPL) metric value corresponded to "fear." This had not been seen since February 2021. The long-term investors saw their unrealized losses increasing, even as the price remained around $600.

However, BNB has not embarked on a long-term downtrend. It was more likely that the drop in NUPL in the past two months could mark a local bottom for the token.

The MVRV ratio has hovered around the 1.2 level since October 2024. Even the steady gains up to December did not push the metric higher. This indicated new buyers entering the market, keeping the realized value high and the MVRV ratio stable.

Therefore, there was evidence that new buyers were entering, and long-term holders were not taking profits in large numbers. If they had been, the MVRV would be falling, and the CDD would reflect it.

Overall, the long-term metrics highlighted bullishness for Binance Coin. Investors who believed the broader market cycle had not ended could find an appealing entry point in BNB.