Will the Arkham (ARKM) airdrop put bearish pressure on BNB
Date: 2023-07-20 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
On July 10, the price of Binance Coin (BNB) rose by 4% and took the $240 barrier after the high-profile Arkham Intelligence project was launched on Binance Launchpad. Will the sale of Arkham tokens now provoke bearish pressure on the coin?
The Arkham Intelligence project announced the launch of "the world's first on-chain data exchange", which will allow you to anonymously buy and sell information about any crypto wallet. An ambiguous product for the de-anonymization of the blockchain instantly became the object of criticism from the crypto community. However, this idea immediately attracted millions of users to the new platform.
Despite the controversial nature of the project, crypto exchange Binance soon announced the listing of the platform's Arkham token (ARKM) for users who subscribed to Launchpad. The subscription for the sale of ARKM tokens on Binance Launchpad was valid for 24 hours and has already been closed.
Arkham was launched on Binance Launchpad with a total supply of 50 million coins, or 5% of the token supply.
Data released by Binance ahead of Arkham's public token sale showed that 114,454 participants committed 10.18 million BNB tokens (~$2.4 billion) to participate in purchases.
If we take into account that the risks associated with the SEC lawsuit still hang over Binance, many are interested in whether holders will sell BNB and thereby swing the price in the coming days.
The launch of Arkham provoked high on-chain activity on the BNB network
On-chain data shows that the hype surrounding the launch of Arkham Intelligence and the public sale of ARKM has led to an increase in activity on the BNB network. As shown below, the number of intraday active addresses increased by 54% from 2513 (July 9) to a peak of 3889 (July 14).
The daily active address indicator measures online activity by tracking the number of individual wallets interacting with each other on a given day. The sharp increase in the indicator observed over the past week indicates a growing demand for the asset.
However, the chart now shows that after the hype around the public sale event subsided, the BNB network began to lose popularity again. Since reaching a recent high on July 14, BNB's active address count has fallen by 200% to 1293 at the close of trading on July 17.
An increase in social activity may cause a bearish momentum
In addition to the sharp fluctuations in the BNB network, the launch of the Arkham token caused a significant resonance on various social platforms and in the media. Santiment data shows that BNB's Social Volume has increased over the past week. For the period from July 9 to July 17, it increased by 190%, from 80 to 232 mentions.
The social volume metric tracks the number of mentions of a project in relevant cryptocurrency channels.
It should be borne in mind that this level of media attention may increase bearish sentiment if the sale of Arkham tokens causes negative dynamics among participants.
BNB Prediction: Bears May Target $210
Santiment's Market-Value to Realized-Value (MVRV) ratio, which shows the ratio of the market to realized value of the coin, shows that the majority of holders who bought BNB in the last 60 days are currently in the 10% loss zone. If activity on the network continues to decline, the bears may head towards the target level of $210.
However, some stalwart hodlers may fiercely defend the $220 support level so as not to deepen losses. However, if the bearish momentum builds, the price of Binance Coin may fall even lower, to $200.
However, the bulls could negate the bearish outlook if the price of Binance Coin rises above the $250 resistance level.
However, some holders may start selling around $252 when their losses are reduced to 5%. However, if this resistance level is broken, BNB could rise to $280.
