author
Published:
- BNB has surged past the $600 mark, with increasing volume and an RSI approaching overbought levels, indicating a potential move towards $620.
- Short squeezes and a rise in open interest enhance the prospects for further upward movement in the near term.
Binance Coin [BNB] has successfully crossed the significant $600 threshold, attracting attention from traders looking at $620 as the next target. The critical question remains whether BNB can sustain this upward trajectory or if it will retract.
BNB’s price trends: Can $600 withstand the test?
BNB’s recent trading behavior indicates a clear departure from its previous downtrend, rebounding to $605.3 after challenging the $600 resistance. This level has evolved into a central point of contention between bulls and bears.
The RSI reading of 70.28 suggests an overheated market, indicating potential for a price correction. However, if BNB can stay above $600, a test of $620 could be imminent.
Traders are scrutinizing the $615.4 level as the next resistance point, while $546 is regarded as a vital support level if a correction occurs.
Source: TradingView
Volume increase boosts market confidence
Trading volume has risen by 38.29% to $1.03 billion, indicating heightened interest in BNB within the market. An increase in volume at a key price point is a strong signal that more investors are entering the fray.
This uptick suggests that market players are supporting the current breakout, which could lead to higher prices. Thus, as long as volume remains strong, BNB is poised for additional gains.
Source: Coinglass
Liquidation dynamics: Shorts under pressure
The liquidation statistics for BNB reveal that short sellers are feeling the pressure, with $45.98K worth of shorts liquidated versus $259.41K in liquidations of long positions.
This imbalance is favorable for bullish trends, as the short squeeze significantly contributes to BNB’s recent price rally, enhancing the chances of further increases as short positions continue to close.
Source: Coinglass
Growing market confidence
BNB’s Open Interest has climbed by 13.74% to $671.80 million, signaling increasing trader confidence. An uptick in Open Interest alongside rising prices indicates new investments are entering the market, further backing the ongoing surge.
Thus, BNB appears to have solid support for advancing further. The influx of capital reflects a positive outlook for sustained bullish activity in the imminent future.
Source: Coinglass
What lies ahead for BNB?
BNB’s rise beyond $600, supported by increasing volume and expanding open interest, indicates that the upward momentum is likely to persist.
With short positions facing pressure and traders demonstrating significant support, BNB looks ready to make a move toward $620 in the upcoming days.
Explore Binance Coin’s [BNB] Price Prediction for 2024–2025
Nonetheless, if BNB struggles to maintain its current upward trend and falls below the $600 barrier, it may quickly retreat towards the $546 support level.
Such a scenario would indicate diminishing bullish strength and invite increased volatility, potentially leading to further downward pressure.
