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- BNB breaks above $600 with increasing volume and RSI near overbought, signaling potential for a rally towards $620.
- Short squeezes and rising open interest support further bullish momentum in the near term.
Binance Coin (BNB) BNB has broken above the crucial $600 level, attracting the attention of traders who are eyeing its next potential target at $620. The big question now is whether BNB can maintain this momentum or pull back.
BNB Price Trend: Will $600 Hold?
The recent BNB price action shows a clear break from its downward trend, bouncing back to $605.3 after testing the $600 resistance. This level has become the key battleground for both bulls and bears.
The RSI at 70.28 indicates that the market is overbought, which suggests caution about a possible correction. However, if BNB manages to hold above $600, it could soon test $620.
Traders are watching the $615.4 level as the next resistance zone, while $546 serves as crucial support if a retracement occurs.
Source: TradingView
Rising volumes boost confidence
With a 38.29% increase in trading volume to $1.03 billion, BNB is showing increased market interest. The increase in volume at a pivot price level is a strong indicator that more traders are getting involved.
This surge suggests that market participants are supporting the breakout, which could propel prices higher. Therefore, as long as volume remains robust, BNB looks set to post further gains.
Source: Coinglass
Clearance: Shorts are all the rage
BNB liquidation data paints a clear picture: short sellers are under pressure, with $45.98K in shorts liquidated versus $259.41K in longs liquidated.
Therefore, this imbalance favors bullish momentum. The short squeeze is a significant contributor to BNB’s recent bullish move, strengthening the likelihood of further price gains as shorts continue to be liquidated.
Source: Coinglass
Market confidence increases
BNB’s open interest jumped 13.74% to $671.80 million, a sign of growing confidence among traders. The rising open interest and rising prices suggest that new capital is flowing into the market, further supporting the current rally.
The BNB therefore appears to have strong support for further growth. The increase in capital in the market reflects optimism that the bullish action will continue in the short term.
Source: Coinglass
What’s next for BNB?
BNB’s surge above $600, supported by rising volume and growing open interest, suggests that momentum is likely to continue.
With short sellers under pressure and traders showing strong support, BNB looks set to push towards $620 in the coming days.
Read Binance Coin (BNB) Price Prediction for 2024-2025
However, if BNB fails to maintain its current momentum and falls below the $600 level, we could see a quick return towards the $546 support.
This would signal a weakening of bullish strength and open the door to increased volatility, potentially inviting further downward pressure.
