BNB under pressure as Binance stablecoin reserves hit multi-month lows
Binance Coin (BNB) is trading below $600 amid falling stablecoin reserves on Binance, which have dropped to their lowest levels in several months, according to CryptoQuant data. Declining stablecoin balances typically signal reduced dry powder for buying and can indicate de-risking by traders, weakening short-term liquidity and price support. Concurrently, Bitcoin (BTC) balances on Binance have risen to their highest since late 2024, a shift often interpreted as potential selling pressure or imminent trading activity. Technicals show BNB is oversold but lacks sufficient buying momentum; key levels to watch are support at $573.49 and $543.03, with resistance at $597.41, $619.48 and $642.11. Analysts say a decisive move above $597 is needed to regain bullish momentum, while persistent tight stablecoin liquidity could cap upside and favour range-bound or downward moves in the near term. The situation increases the risk of larger price swings if liquidity is insufficient to absorb big orders.
Bearish
Falling stablecoin reserves on Binance reduce available buying power on the exchange, raising the likelihood that the market cannot absorb large sell orders, which increases downside risk for BNB and other altcoins. The simultaneous rise in BTC balances on Binance suggests traders are repositioning or preparing to sell, adding potential selling pressure. Technicals show BNB is oversold but lacks confirmation of a reversal; critical resistance near $597 must be reclaimed for bulls to regain control. Historically, drops in exchange stablecoin holdings have preceded range-bound periods or further declines until liquidity returns (similar patterns occurred during mid-2022 market stress and in several altcoin corrections when exchange stablecoin inflows fell). Therefore, expect limited upside and elevated volatility short-term; longer-term outlook depends on whether stablecoin liquidity and on-exchange BTC balances normalise and buying demand returns.