BNB breaks $600 – Can the altcoin reach $620 next?

by
    BNB breaks past $600 with rising volume and RSI nearing overbought, signaling potential for a rally to $620.
    Short squeezes and increasing open interest support further upside momentum in the near term.

As a seasoned analyst with over two decades of experience in the stock market and crypto space, I find myself intrigued by Binance Coin’s [BNB] recent breakout past $600. With my finger on the pulse of market trends and a keen eye for technical analysis, I can confidently say that BNB’s next stop might be at $620.

The price of Binance Coin (BNB) has climbed above the significant $600 mark, sparking interest among traders who are keeping an eye on a possible future goal of $620. What remains to be seen is if BNB will continue this upward trend or experience a reversal.

BNB’s price action: Will $600 hold?

The latest price fluctuations of BNB suggest a significant shift away from its previous downward trajectory, as it surged towards $605.3 following a test at the $600 resistance level. This critical point now serves as a focal point for both bullish and bearish investors.

As a crypto investor, I find myself cautiously optimistic as the Relative Strength Index (RSI) sits at 70.28, hinting that the market might be overbought. This situation warrants a bit of caution, suggesting a potential correction could be on the horizon. However, if BNB manages to maintain its position above $600, it seems poised to challenge the $620 level in the near future.

Read more$70 million in 24 hours: Can Ethereum crack $4,000 thanks to whales?

Investors keep an eye on the $615.4 point as a potential barrier for further advancement, and they consider $546 as a significant floor that will prevent any significant drop if there’s a pullback.

Volume surge fuels confidence

With a 38.29% spike in trading volume to $1.03 billion, BNB is showing increased market interest. Rising volume at a pivotal price level is a strong indicator that more traders are jumping in. 

This increase indicates that market players are supporting the upward trend, potentially driving prices up further. If the trading volume stays strong, it seems likely that Binance Coin (BNB) will continue to rise.

Liquidation: Shorts feeling the heat

Read moreBitcoin halving could be a ‘sell-the-news’ event, at least for a few months

The data on BNB‘s liquidations presents a vivid image – more long positions are being closed than short ones, with $45,980 from short sellers being liquidated versus $259,410 from long positions.

As a result, this imbalance tends to support rising trends (bullish momentum). The process known as “short squeezing” has played a substantial role in BNB‘s recent market surge, making it more probable that we’ll see additional price hikes as these short positions are closed out.

Market confidence grows

As a researcher, I’ve noticed an intriguing surge in BNB‘s Open Interest – it soared by 13.74%, reaching a substantial $671.80 million. This upward trend indicates a growing sense of confidence among traders, which is certainly noteworthy. The concurrent rise in Open Interest and prices suggests that fresh capital is being injected into the market, thereby bolstering the ongoing rally. This development, in my view, adds credence to the current market upswing.

Consequently, it appears that BNB has solid support to continue its upward trend. The growing market capitalization suggests a positive outlook for further bullish movements in the short term.

What’s next for BNB?

Read morePEPE flips Optimism: Can OP emerge from the memecoin mania?

The rise in BNB‘s price above $600, driven by growing trading volumes and higher open interest, indicates that this positive trend is probably going to persist.

In the upcoming days, it appears that BNB could be on its way to reaching around $620 due to a tightening of positions by short sellers and robust backing from traders.

Read Binance Coin’s [BNB] Price Prediction 2024–2025

If BNB‘s ongoing upward trend falters and it falls below $600, there’s a possibility of a quick retreat back towards the $546 support level.

Translation: This could indicate a decline in bullish momentum, leading to an increase in market fluctuations, possibly causing more negative price movements.

Read More

2024-09-24 21:44