- BNB holds above the key trendline as whales increase shorts likely to hedge large spot holdings.
- On-chain activity surges with over 3.6M daily users, signaling strong network engagement.
- BNB eyes breakout above $700, supported by bullish structure and 50-week EMA strength.
Binance Coin (BNB) is currently trading at $675.05 and showing strength near key technical levels. Despite recent short positions increasing among large traders, the BNB Chain is witnessing a major spike in on-chain activity. Market analysts suggest this could be a classic hedge rather than a bearish stance.
Short Interest Climbs as BNB Chain Reports Record Activity
According to analysis prepared by CryptosBatman on X, BNB has flipped its old trendline and broken out of a falling wedge pattern, often considered a bullish setup. At the same time, data from BNB Chain shows a sharp rise in network engagement, with daily active users exceeding 3.6 million across BSC and opBNB.
Coinglass data shows increasing short interest in BNB derivatives, with whale wallets adding notable short exposure. However, this activity is likely a hedge to offset large spot holdings. Analysts note that whales often take short positions to manage risk without selling their long-term holdings.
The trend is supported by BNB’s historical behavior, where similar short builds coincided with upward breakouts. This divergence between chain activity and derivatives positioning may indicate a strategy rather than a market reversal.
Technical Structure Points Toward Continuation Above $700
BNB is holding above the 50-week EMA, which has historically acted as a strong support zone. Price action suggests an attempt to reclaim all-time highs at $788.84, with bullish continuation targeting $1,000 if current trends remain intact.
Rose Premium noted, “BNB has been re-accumulating along the all-time high for over a year,” with strong potential for price discovery. The current market structure supports upward movement as long as BNB remains above key moving averages.
While shorts increase, the underlying data points to whales managing risk rather than expressing strong bearish sentiment. Traders are advised to watch for breakout confirmation rather than reacting solely to open interest data.
