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  • Binance Coin price has hit a new all-time high at $53 on February 2. 
  • The digital asset had a massive 22% breakout in the past 24 hours but might be poised for a correction.
  • Several metrics show BNB price is overextended and needs to cool off.

Binance Coin was trading sideways for the last three months of 2020 and started a bull rally at the beginning of 2021, climbing from $36 to an all-time high of $53 in just one month. The digital asset is slightly overextended now and needs to see a healthy pullback in order to resume the uptrend.

Binance Coin price needs a healthy correction to maintain the uptrend

The trading volume of Binance Coin has hit an all-time high of $1.4 billion in the past 24 hours. This massive spike is a bearish sign as in the past, significant increases in trading volume have led Binance Coin price to a correction as it happened on September 14, 2020, or November 24, 2020. 

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BNB trading volume chart

Additionally, the MVRV (30d) has spiked above 10% into the risk area, which often signifies BNB is about to see a significant pullback in the short-term. 

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BNB MVRV (30d) chart

Using the Fibonacci Retracement tool, we can identify several key support levels for BNB. The nearest is located at the 78.6% Fib level ($47.2). If the bears can push Binance Coin below this point, they will likely drive the digital asset down to $42.6 at the 61.8% level. 

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BNB/USD daily chart

However, the number of large holders with 10,000 to 100,000 BNB coins ($520,000 to $5,200,000) has increased by seven since the beginning of 2021, which indicates they believe the digital asset can continue to climb higher.

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BNB Holders Distribution chart

If BNB cracks the last resistance level at $53, it will likely rise towards $60, which is a psychological level and the 127% Fibonacci level.