BNB’s Potential Rally Towards $700
BNB is starting to carve its own path, leaving other cryptocurrencies behind. Recently, its price moved from $593 to $607 after the Open Interest added almost $100 million. Momentum seemed bullish, indicating that the price could climb close to $700.
Open Interest Surge
Despite registering a lower value a few days back, Binance Coin’s (BNB) Open Interest (OI) has risen. On 30 May, for instance, the OI was down to $335 million on the charts. However, press time data obtained from Santiment revealed that the metric soon climbed to $418.54 million. Open Interest is a sign of whether more money is flowing into contracts related to a cryptocurrency or not.
The “God Candle”
Whenever the OI increases, it means that traders are adding liquidity to the market. For BNB, it was the former. A rising OI could serve as a strength for the price action. At press time, BNB’s price was $607.57. According to AMBCrypto’s analysis, the candlestick that led the price higher was a “god candle,” indicating a significant price surge within a short period.
Potential Price Movements
This surge was proof that rising interest in the coin has been backing the uptrend. If bears reject the uptrend, the price could retrace as low as $585. However, if bulls break past the overhead resistance, the value of the coin could rally towards $686, as predicted by AMBCrypto.
Sentiment and Momentum
Despite negative sentiment surrounding BNB, a further hike in its price could change the perception of the coin. Once sentiment turns bullish, demand might hike too, validating the bullish price prediction. Additionally, examining the Relative Strength Index (RSI) reveals that buying momentum in the market has increased, with BNB’s RSI on the 4-hour chart at 62.49. If the momentum continues upward, BNB’s price might follow suit, potentially nearing $700. However, if momentum slows down, the coin’s value might slip below $600.
Conclusion
Traders might continue to open more BNB contracts, with most positions potentially tilting towards the long side. If this trend persists and the price rises, longs might be rewarded soon.
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