With bullish sentiment on the rise in the market, Binance’s BNB is garnering increasing attention. Currently, BNB is being traded at $609.51, marking a 1.94% increase in the last 24 hours.
Indicators from both retail investors and institutional investors are showing signs of positivity. The question now is: can BNB surpass key resistance levels and continue its current upward trend?
Is BNB Ready to Surpass Critical Resistance Levels?
The price movement of BNB is displaying promising indications of strength. Being above the $600 mark currently, the token is encountering a significant resistance level at $617.
This particular level has historically acted as a tough obstacle to overcome, but a breakthrough could pave the way for a push towards the next significant target of $715.7. Therefore, conquering this resistance level holds crucial importance for sustaining further upward momentum.
Furthermore, the stochastic RSI on the chart has reached an overbought territory, confirming the strong buying pressure supporting BNB’s recent surge.
Yet, an overbought RSI often foreshadows a brief pullback, indicating the possibility of a temporary correction before the rally resumes. Keeping an eye on the $599 support level would be prudent in case this retracement materializes.
Increasing Interest in BNB?
Although the social dominance of the coin has been fluctuating in recent months, it currently stands at 0.757%, reflecting a sustained level of market attention.
Consistency in social activity holds significance, as higher social dominance typically correlates with a rise in investor interest, potentially steering more market participants towards BNB and bolstering its price. Nevertheless, it’s vital to understand that social dominance alone does not guarantee continuous price growth.
An Indicator of Confidence?
Open interest in the Futures market has seen a significant surge of 5.94%, reaching a total of $562.01 million currently.
This surge in open interest signifies a growing interest from traders and indicates an increase in bets on the future price movements of Binance Coin.
An uptick in open interest often results in heightened volatility, offering more trading opportunities for Binance Coin in the short term. However, the rise in open interest also implies exposure to market risks, as substantial traders might liquidate their positions, causing sharp fluctuations in prices. Traders should remain vigilant as open interest continues to grow.
Will BNB Sustain Its Bullish Momentum?
The ascending price of Binance Coin, along with the optimistic sentiment and escalating open interest, all point towards a potential uptrend. However, it is crucial to overcome the key resistance at $617.
Although Binance Coin appears well-equipped for further advancements, short-term corrections cannot be ruled out. Breaking through this resistance level could lead to a rally towards $715, setting the scene for further bullish movements.