BNB rises 10%, but $500 may not be that easy to attain

  • BNB’s price increased by 10% as the market cap took back its previous position.
  • Technical indicators aligned with a strong upward direction for the coin.

In the last 24 hours, Binance Coin [BNB] proved why it was able to take back the fourth position per market cap from Solana [SOL].

At press time, the coin changed hands at $482, representing a 10% increase. Also, AMBCrypto’s analysis of the exchange coin showed that the value might soon hit $500.

The press time value of BNB marked a two-year high as the coin had experienced the thick and thin of the outgoing bear market. One reason for this forecast is the altcoin’s liquidation levels.

Liquidation levels show price points that could trigger the automatic closure of existing positions.

No upside to shorting the coin

As of this writing, BNB’s liquidation level showed that the price could rise to $502.76 soon. If the price hits this level, shorts might experience a high level of liquidation.

However, the indicator revealed that the wipeout could happen as soon as the value of the coin hit $490.

Therefore, it might not be a good trading decision to open a short BNB position— especially one with high leverage. For the uninitiated, shorts are traders who bet on a price decline and intend to profit from it.

Source: HyblockCapital

The chart above also considered the Cumulative Liquidation Level Delta (CLLD). At press time, the CLLD was positive. From a price action point, this positive reading could fuel a bearish bias.

Should the CLLD positive state continue to rise high, BNB could experience a full retrace once it hits the $500 psychological resistance.

BNB to $500 or the market is wrong

If the coin rebounds afterward, its next target might be to rally to its all-time high. Furthermore, according to AMBCrypto’s analysis of the BNB/USD daily chart, the On Balance Volume (OBV) had jumped at press time.

This implied that the positive volume closed higher on the 7th of March than on the 6th.

Concerning the price action, this was a bullish sign. In addition, the Directional Movement Index (DMI) reinforced the OBV signal.

At press time, the +DMI (green) was 33.63 while the -DMI (red) was 13.29. The difference in these indicators underscored a large buyer dominance.

However, it is important to mention that the Average Directional Index (ADX) plays an important role in the price.

As of this writing, the ADX (yellow) was 51.24. Having a reading higher than 25 implies that BNB has a strong directional movement.

Binance Coin (BNB) daily price analysis

Source: TradingView

How much are 1,10,100 BNBs worth today?

Since the +DMI outpaced the -DMI, it suggested that a significant price increase was ahead. In a highly bullish case, BNB’s price might hit as high as $520.

However, a decline in buying momentum could force the price lower. From a bearish perspective, the coin might tap $430, but the press time market sentiment may not align with this prediction.

Next: What are MATIC’s chances of reaching $2?

Source link

About The Author

Scroll to Top