BNB Price Analysis: Whale Demand Hits $112M as Scroll (SCR) Launches on Binance

BNB Price Analyis:

Binance Coin (BNB) opened trading at $570 on Thursday, October 10, 2024. Despite its 6% correction in the last 48 hours, on-chain data shows whale investors accumulating large amounts of BNB following the launch of Scroll (SCR), a new Layer 2 project hosted on the Binance Launchpool.

As BNB finds support at key levels, could this surge in whale demand trigger a major rebound phase?

BNB Finds Support at $560 Ahead of Scroll (SCR) Launch

BNB price has faced downward pressure this week, dropping below the $560 support zone as markets reacted to regulatory scrutiny, particularly the SEC’s legal action against Cumberland, a crypto market-making firm co-run by Ryan Salane, former FTX executive.

 

Amid the market shake-up, the chart above shows how BNB price retraced 6%, tumbling as low as $551 on Oct 10. While BNB has made a mild-recovery in the last 24-hours, reclaiming the $565 level at the time of writing on Oct 11.

BNB mild-recovery on Oct 11 has been linked to a surge in whale demand after Binance announced Scroll (SCR), a new L2 project built on the exchange’s native launchpool.

BNB Whale Demand Hits $120M as Scroll (SCR) Launches on Binance

On Oct 10, Binance announced the launch of Scroll, an Ethereum Layer-2 solution that leverages zero-knowledge proofs (ZKPs) to address issues like high gas fees and slow transaction times. By bundling transactions off-chain, Scroll aims to make Ethereum faster and more cost-efficient.

The launch of SCR on Binance has sparked significant interest from whale investors, who have accumulated large amounts of BNB to participate in the farming pool for SCR tokens.

On-chain analytics platform Lookonchain identified 4 whale wallets that borrowed over $100 million worth of BNB within 24 hours of Binance’s announcement about Scroll. These large-scale purchases signal strong confidence in BNB’s long-term prospects as whales position themselves for the launch.

• 0x1e7f borrowed 65K BNB (~$37.34M).
• 0x5c18 borrowed 52K BNB (~$29.9M).
• 0xcd40 borrowed 39.5K BNB (~$22.7M).
• 0x2d87 borrowed 39K BNB (~$22.4M).

Whale Activity and Upcoming Events Could Drive BNB Rebound

The increase in whale demand, combined with the SCR launch, suggests that BNB may be poised to break its current downtrend. Investors participating in the SCR farming program are likely buying large amounts of BNB to lock in early rewards, providing a much-needed boost to BNB price action.

Additionally, the latest US CPI report, which came in hotter than expected, could further fuel demand for inflation-hedging assets like BNB. The CPI data for September 2024 showed a 2.4% rise, slightly above the forecasted 2.3%.

Market analysts believe this could prompt another rate cut from the US Federal Reserve, which would likely drive demand for risk assets, including BNB.

BNB Price Forecast: SCR Launch and CPI Set Stage for $600 Rebound

From a technical standpoint, BNB remains above the critical support at $560. The 50-day moving average provides dynamic support at $575.99, while the Bollinger Bands indicate a potential range breakout as price consolidates near the lower band at $534.73.

If buying pressure from whales intensifies amid the SCR launch, BNB could see a rebound toward the upper resistance at $617.24.

Moreover, the Stochastic Momentum Index (SMI) has just crossed into bullish territory, signaling that BNB’s recent downward momentum is fading. With whales buying up large amounts of BNB, the stage is set for a possible retest of the $600 psychological resistance.

In conclusion, whale accumulation, coupled with positive macroeconomic conditions like potential rate cuts, suggests that BNB is likely to see a bullish breakout in the coming days. Investors should keep an eye on the $617.24 resistance and the $534.73 support as key levels to watch.