TLDR
- BNB trading at $595, facing resistance at $600 level
- Bullish crossover formed with 50-day EMA above 100-day EMA
- Buying volumes increasing, potential for breakout
- Liquidation levels between $600-$630 could trigger short squeeze
- Open Interest in Futures market at $620M, down from recent high
BNB, the native token of the Binance ecosystem, is showing signs of bullish momentum as it approaches the $600 resistance level.
Recent technical indicators and market data suggest that the cryptocurrency may be poised for a breakout, though challenges remain.
As of September 27, 2024, BNB was trading at $595, having made a 9% gain over the past 30 days. The token has been closely following Bitcoin’s price movements, as is common with many altcoins in the cryptocurrency market.
A significant development on the technical analysis front is the formation of a bullish crossover on the daily chart.
The 50-day Exponential Moving Average (EMA) has moved above the 100-day EMA, typically interpreted as a sign that short-term momentum is gaining strength compared to long-term trends. This crossover could attract more buyers to BNB, potentially driving prices higher.
Supporting this bullish outlook is an increase in buying activity, as evidenced by the volume histogram bars. These indicators suggest that buying volumes are currently outpacing selling volumes.
Additionally, the Chaikin Money Flow (CMF) shows a reading of 0.30, further confirming active buyer participation in the market.
However, the $600 price level has proven to be a stubborn resistance point for BNB. Multiple attempts to break above this threshold have been met with rejections, indicating that some sellers are taking profits at this price. For a sustained move higher, BNB will need to convincingly break and hold above the $600 mark.
If BNB manages to overcome the $600 resistance, the next target for bulls could be the 100% Fibonacci retracement level at $700.
Achieving this would represent a significant milestone for the token and could attract even more buyer interest.
One factor that could potentially catalyze a price movement is the upcoming release of former Binance CEO, Changpeng Zhao, from prison on September 29, 2024.
Market participants may be positioning themselves ahead of this event, which could lead to increased volatility in BNB’s price.
Looking at liquidation data from Hyblock Capital, there is a concentration of liquidation levels between $600 and $630. If BNB’s price rises to these levels, it could trigger a short squeeze, forcing traders with short positions to buy BNB to cover their positions. This scenario could add further upward pressure on the price.
In the derivatives market, BNB continues to see significant interest. The Open Interest in BNB futures contracts stands at $620 million, according to data from Coinglass.
While this figure is substantial, it has decreased slightly from a three-month high of $677 million recorded on September 24.
