Billions Network [BILL] had gained 20% in the past 24 hours as of writing, turning the weekly losses to gains of more than 7%. Notably, both derivative and on-chain trading activities have driven the rally by sparking extreme liquidity and speculative flows.
Trading volume and on-chain transfers drive prices
On-chain trading has been majorly driven by activity from a safe wallet that has been inactive for a month. According to Arkham, the wallet moved 15.5 million BILL tokens on the Ethereum [ETH] network and then bridged them to the BNB Smart Chain (BSC).
The tokens were distributed into two wallets, where one is still holding 6.5 million tokens. The other 9 million tokens are being sold continuously in chunks of $200, but 8.15 million BILL tokens worth $375K remain.
Source: Arkham
As the safe wallet continues to offload its holdings, it could suggest that the rally is an exit pump. If sellers become more aggressive, they could curtail the pump. Moreover, the trading volume exploded by 1,000% to over $233 million, which is more than double the market cap at $125 million. This resulted in a high turnover ratio of 1.87, signaling a liquidity frenzy.
As such, it means the buying pressure overpowered selling orders in the derivative market. In fact, at press time, the Long/Short ratio for BILL/USDT positions for top traders on Binance was 1.2749.
Additionally, the OI-Weighted Funding Rate turned green, indicating derivative trading was buyer-dominated by both retail and whales. The reading was 0.0241% while the price traded at $0.051.
Source: CoinGlass
What’s next after BILL broke out of a trend channel?
BILL has broken above a descending trend channel that has held the altcoin since early June.
Over the past three days, BILL has printed green candles. This has been confirmed by a bullish RSI Divergence alongside a rising Chaikin Money Flow (CMF).
At the time of writing, the RSI Divergence hovered around 74, highlighting overbought conditions. Despite rising capital inflows, reflected in a CMF reading of 0.27, this setup could point to a potential reversal.
Source: BILL/USD on TradingView
Therefore, BILL remains in a bullish structure on the 4-hour chart, but only if it can continue trading above $0.0400. Hence, a successful retest of the breakout may push the price toward the top of the channel above $0.0950.
However, at $0.0550, the altcoin faces a hurdle to its rally, as price begins consolidating around this zone.
Final Summary
- Billions Network surged 20% in 24 hours amid a surge in on-chain and derivative trading activity.
- BILL’s price broke out of a descending trend channel, but the altcoin is facing resistance at $0.055.
