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.