BNB is seeing increased buying interest as overall market sentiment turns positive. While facing resistance below the $600 level, buyers are anticipated to break through this barrier. Additionally, significant holders are continuing to accumulate BNB during the recent price correction, fueling momentum across various on-chain indicators and supporting the ongoing recovery.
BNB’s Open Interest Increases Despite Negative Funding Rate
Despite many altcoins experiencing significant drops from their all-time highs, Binance Coin (BNB) has displayed strong buying interest, experiencing smaller losses compared to Bitcoin. This resilience has made BNB a favored altcoin for accumulation even amidst market downturns. Coinglass data shows that BNB saw a total liquidation of $97,300, with buyers contributing $37,000 and sellers around $60,000.
Despite the volatile market environment, BNB’s open interest continues to rise. Coinglass reports a 3.3% increase in BNB’s open interest, surpassing $760 million. This growth in open interest could bolster the recovery and mitigate steep declines. However, investor concerns persist as the funding rate recently reached -0.485%, indicating caution.
The ongoing recovery has been further supported by BNB’s most recent quarterly token burn, completed on April 16. The network eliminated 1.57 million tokens, valued at over $1 billion at current prices. These burns are typically determined by the BNB price and the number of blocks produced during the quarter.
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Token burns are a crucial component of BNB’s strategy to enhance its value. According to the project’s tokenomics, quarterly burns will continue until the total circulating supply is reduced from approximately 140 million tokens to 100 million.
The long/short ratio suggests that BNB’s buying momentum is likely to persist. The ratio has surged to 2.1133, indicating that a majority of traders, around 68%, are anticipating a price increase. This increase in long positions could facilitate BNB’s breakthrough of the $600 resistance level.
What’s Next for BNB Price?
Binance Coin (BNB) continues to encounter resistance around the $610 mark. Currently trading near $595, showing a modest 0.66% gain over the past 24 hours. Sellers are striving to keep the price below $600 to sustain a downtrend.
Despite increasing bearish sentiment, BNB shows potential for a rebound as large holders accumulate near the dips. This accumulation is bolstering a gradual recovery, with BNB poised to surpass the $600 threshold soon. The Relative Strength Index (RSI) remains in bullish territory around 60, indicating buyers are maintaining momentum control.
If buying pressure continues to strengthen, BNB could breach the $610 resistance, potentially setting the stage for a move towards the next key target at $644. Conversely, if selling pressure prevails and BNB falls below the 20-day EMA support, the price could decline to the critical $557 level.
